RPF Module 5: Pretest Questions and
Answers (latest update 2024)
Which of the following define highly compensated
employees? (Select 2 that apply)
A. A person who makes $170,000 in the current year
B. An officer of the company
C. A 15% owner in the lookback year
D. A person who makes $200,000 in the lookback year and
the plan does not use the top-paid group election
E. A 3% owner in the current year - Correct Answer ✅C. A
15% owner in the lookback year
D. A person who makes $200,000 in the lookback year and
the plan does not use the top-paid group election
Which of the following define highly compensated
employees? (Select 2 that apply)
A. Son of a 25% owner
B. Parent of an HCE and HCE has no ownership
C. Spouse of a 1% owner
D. Grandparent of a 100% owner
E. Sibling of an owner - Correct Answer ✅A. Son of a 25%
owner
D. Grandparent of a 100% owner
Which of the following is an HCE?
A. Rudolph is the main consultant for an engineering firm.
This year, he was offered the opportunity to buy into the
, RPF Module 5: Pretest Questions and
Answers (latest update 2024)
business. He bought 10% of the business's shares before the
year ended.
B. Stephen graduated from law school last year. This year he
began working for a law firm receiving $135,000 in
compensation and is in the top-paid group.
C. Zelda sells chocolate candy for a large candy
manufacturing firm. Last year she was paid $100,000
including her commissions.
D. Amelia received $125,000 in compensation from the
worldwide construction company that employs her, but she
was not in the top-paid group. - Correct Answer ✅A.
Rudolph is the main consultant for an engineering firm. This
year, he was offered the opportunity to buy into the business.
He bought 10% of the business's shares before the year
ended.
Sanford calculated the ratio percentage test. He determined
the number of benefiting HCEs versus the total HCEs and the
number of benefiting NHCEs versus all NHCEs when he
performed the test. It failed, so he computed the average
benefits test. Sanford is performing which test?
A. ADP test
B. ACP test
C. Coverage test
D. Top-heavy test - Correct Answer ✅C. Coverage test
Answers (latest update 2024)
Which of the following define highly compensated
employees? (Select 2 that apply)
A. A person who makes $170,000 in the current year
B. An officer of the company
C. A 15% owner in the lookback year
D. A person who makes $200,000 in the lookback year and
the plan does not use the top-paid group election
E. A 3% owner in the current year - Correct Answer ✅C. A
15% owner in the lookback year
D. A person who makes $200,000 in the lookback year and
the plan does not use the top-paid group election
Which of the following define highly compensated
employees? (Select 2 that apply)
A. Son of a 25% owner
B. Parent of an HCE and HCE has no ownership
C. Spouse of a 1% owner
D. Grandparent of a 100% owner
E. Sibling of an owner - Correct Answer ✅A. Son of a 25%
owner
D. Grandparent of a 100% owner
Which of the following is an HCE?
A. Rudolph is the main consultant for an engineering firm.
This year, he was offered the opportunity to buy into the
, RPF Module 5: Pretest Questions and
Answers (latest update 2024)
business. He bought 10% of the business's shares before the
year ended.
B. Stephen graduated from law school last year. This year he
began working for a law firm receiving $135,000 in
compensation and is in the top-paid group.
C. Zelda sells chocolate candy for a large candy
manufacturing firm. Last year she was paid $100,000
including her commissions.
D. Amelia received $125,000 in compensation from the
worldwide construction company that employs her, but she
was not in the top-paid group. - Correct Answer ✅A.
Rudolph is the main consultant for an engineering firm. This
year, he was offered the opportunity to buy into the business.
He bought 10% of the business's shares before the year
ended.
Sanford calculated the ratio percentage test. He determined
the number of benefiting HCEs versus the total HCEs and the
number of benefiting NHCEs versus all NHCEs when he
performed the test. It failed, so he computed the average
benefits test. Sanford is performing which test?
A. ADP test
B. ACP test
C. Coverage test
D. Top-heavy test - Correct Answer ✅C. Coverage test
