QPA® – QUALIFIED PENSION ADMINISTRATOR PRACTICE
EXAM: 100 COMPREHENSIVE MULTIPLE-CHOICE QUESTIONS
WITH DETAILED ANSWER RATIONALES (2026 EDITION)
1. Under ERISA, the primary purpose of a qualified retirement plan is to:
A. Reduce corporate income taxes
B. Provide retirement benefits to employees
C. Replace Social Security
D. Increase executive compensation
Rationale: Qualified retirement plans are established primarily to provide
retirement income or defer compensation until retirement.
2. Which document legally establishes the operation of a qualified retirement
plan?
A. Summary Annual Report
B. Trust Agreement
C. Investment Policy Statement
D. Written Plan Document
Rationale: A written plan document is required by ERISA and the Internal Revenue
Code to establish and govern plan operations.
3. Which employee generally cannot be excluded solely because of age if the
employee satisfies statutory participation requirements?
A. Employee age 20
,B. Employee age 22
C. Employee age 25
D. Employee age 60
Rationale: Once minimum age and service requirements are satisfied, eligible
employees generally cannot be excluded because of age.
4. A plan fiduciary must always act:
A. Solely in the interest of participants and beneficiaries
B. According to employer preferences
C. To maximize company profits
D. To increase executive benefits
Rationale: ERISA's exclusive benefit rule requires fiduciaries to act solely for
participants and beneficiaries.
5. Which plan primarily promises a specified retirement benefit?
A. Profit-sharing plan
B. Defined benefit plan
C. SEP IRA
D. SIMPLE IRA
Rationale: Defined benefit plans promise a predetermined retirement benefit
based on a formula.
6. Employer matching contributions are generally made because an employee:
A. Reaches retirement age
,B. Makes elective deferrals
C. Changes employment
D. Completes five years of service
Rationale: Matching contributions are based on employee elective deferrals.
7. Which IRS qualification requirement helps ensure retirement plans benefit a
broad group of employees?
A. Vesting schedule
B. Investment diversification
C. Distribution timing
D. Coverage testing
Rationale: Coverage testing prevents plans from favoring only selected employees.
8. Which participant right is protected under ERISA?
A. Guaranteed investment returns
B. Access to plan information
C. Unlimited loans
D. Automatic early withdrawals
Rationale: Participants have the right to receive disclosures and plan information.
9. A participant becomes fully vested after satisfying the plan's vesting
schedule. "Vested" means the participant has:
A. Retired permanently
B. A nonforfeitable right to benefits
, C. Reached age 65
D. Received all distributions
Rationale: Vesting gives participants ownership rights to earned benefits.
10.The primary purpose of a plan trustee is to:
A. Conduct payroll
B. Prepare tax returns
C. Hold plan assets in trust
D. Approve employee promotions
Rationale: Trustees are responsible for safeguarding and holding plan assets.
11.Which contribution is always 100% vested immediately?
A. Employer profit-sharing contribution
B. Employee elective deferral
C. Employer matching contribution
D. Employer discretionary contribution
Rationale: Employee salary deferrals are always immediately vested.
12.Which federal agency primarily enforces fiduciary provisions under ERISA?
A. Internal Revenue Service
B. Pension Benefit Guaranty Corporation
C. Department of Labor
D. Social Security Administration
EXAM: 100 COMPREHENSIVE MULTIPLE-CHOICE QUESTIONS
WITH DETAILED ANSWER RATIONALES (2026 EDITION)
1. Under ERISA, the primary purpose of a qualified retirement plan is to:
A. Reduce corporate income taxes
B. Provide retirement benefits to employees
C. Replace Social Security
D. Increase executive compensation
Rationale: Qualified retirement plans are established primarily to provide
retirement income or defer compensation until retirement.
2. Which document legally establishes the operation of a qualified retirement
plan?
A. Summary Annual Report
B. Trust Agreement
C. Investment Policy Statement
D. Written Plan Document
Rationale: A written plan document is required by ERISA and the Internal Revenue
Code to establish and govern plan operations.
3. Which employee generally cannot be excluded solely because of age if the
employee satisfies statutory participation requirements?
A. Employee age 20
,B. Employee age 22
C. Employee age 25
D. Employee age 60
Rationale: Once minimum age and service requirements are satisfied, eligible
employees generally cannot be excluded because of age.
4. A plan fiduciary must always act:
A. Solely in the interest of participants and beneficiaries
B. According to employer preferences
C. To maximize company profits
D. To increase executive benefits
Rationale: ERISA's exclusive benefit rule requires fiduciaries to act solely for
participants and beneficiaries.
5. Which plan primarily promises a specified retirement benefit?
A. Profit-sharing plan
B. Defined benefit plan
C. SEP IRA
D. SIMPLE IRA
Rationale: Defined benefit plans promise a predetermined retirement benefit
based on a formula.
6. Employer matching contributions are generally made because an employee:
A. Reaches retirement age
,B. Makes elective deferrals
C. Changes employment
D. Completes five years of service
Rationale: Matching contributions are based on employee elective deferrals.
7. Which IRS qualification requirement helps ensure retirement plans benefit a
broad group of employees?
A. Vesting schedule
B. Investment diversification
C. Distribution timing
D. Coverage testing
Rationale: Coverage testing prevents plans from favoring only selected employees.
8. Which participant right is protected under ERISA?
A. Guaranteed investment returns
B. Access to plan information
C. Unlimited loans
D. Automatic early withdrawals
Rationale: Participants have the right to receive disclosures and plan information.
9. A participant becomes fully vested after satisfying the plan's vesting
schedule. "Vested" means the participant has:
A. Retired permanently
B. A nonforfeitable right to benefits
, C. Reached age 65
D. Received all distributions
Rationale: Vesting gives participants ownership rights to earned benefits.
10.The primary purpose of a plan trustee is to:
A. Conduct payroll
B. Prepare tax returns
C. Hold plan assets in trust
D. Approve employee promotions
Rationale: Trustees are responsible for safeguarding and holding plan assets.
11.Which contribution is always 100% vested immediately?
A. Employer profit-sharing contribution
B. Employee elective deferral
C. Employer matching contribution
D. Employer discretionary contribution
Rationale: Employee salary deferrals are always immediately vested.
12.Which federal agency primarily enforces fiduciary provisions under ERISA?
A. Internal Revenue Service
B. Pension Benefit Guaranty Corporation
C. Department of Labor
D. Social Security Administration
