RPF - Module 2 - Unit 2 - Plan Entry and
Participation- Questions & Answers
When a plan is designed, a copy of the SPD must be provided to participants within _____ days
after the later of the plan's _____ . Correct Ans-1) 120
2) effective date or adoption date
For new participants, the SPD must be provided ____ after becoming a participant, AND
______. Correct Ans-1) 90 days
2) whenever the SPD is updated
Good practice while dispersing SPDs is to get a _____ from the new participant. Correct Ans-
Signed acknowledgment of receipt
In order for participants to specify the amount and types of deferrals they will make,
they must be given a ______. Correct Ans-salary deferral election form
In what fund do participant assets get deposited if a plan has an automatic enrollment function?
Who decides what fund? Correct Ans-1) The fund is called a Qualified Default Investment
Alternative
2) The Trustee
QDIA Correct Ans-Qualified Default Investment Alternative
, In automatic enrollment, a participant must be given a notice on the QDIA ______ and it is
provided _____. Correct Ans-1) At the time that the participant becomes *ELIGIBLE*
2) Annualy
If participants do not make an election, their contributions will be placed in the _____.
Correct Ans-Plan's default fund
____-directed plans must provide fee disclosure and investment docs, ____-directed plans do
not. Correct Ans-1) Participant
2) Trustee
If the plan is a safe harbor plan, a newly eligible participant must receive a notice of the plan's
safe harbor status no sooner than _______ and no later than _____. Correct Ans-1) 90 days
prior to their eligibility
2) The date they become eligible.
**So some time in the three months prior to achieving eligibility
Safe Harbor Notice must include these 8 things. Correct Ans-1) What types of contributions
Employer is making
2) To what specific plans these contributions will go
3) Type/Amount of allowed deferred compensation
Participation- Questions & Answers
When a plan is designed, a copy of the SPD must be provided to participants within _____ days
after the later of the plan's _____ . Correct Ans-1) 120
2) effective date or adoption date
For new participants, the SPD must be provided ____ after becoming a participant, AND
______. Correct Ans-1) 90 days
2) whenever the SPD is updated
Good practice while dispersing SPDs is to get a _____ from the new participant. Correct Ans-
Signed acknowledgment of receipt
In order for participants to specify the amount and types of deferrals they will make,
they must be given a ______. Correct Ans-salary deferral election form
In what fund do participant assets get deposited if a plan has an automatic enrollment function?
Who decides what fund? Correct Ans-1) The fund is called a Qualified Default Investment
Alternative
2) The Trustee
QDIA Correct Ans-Qualified Default Investment Alternative
, In automatic enrollment, a participant must be given a notice on the QDIA ______ and it is
provided _____. Correct Ans-1) At the time that the participant becomes *ELIGIBLE*
2) Annualy
If participants do not make an election, their contributions will be placed in the _____.
Correct Ans-Plan's default fund
____-directed plans must provide fee disclosure and investment docs, ____-directed plans do
not. Correct Ans-1) Participant
2) Trustee
If the plan is a safe harbor plan, a newly eligible participant must receive a notice of the plan's
safe harbor status no sooner than _______ and no later than _____. Correct Ans-1) 90 days
prior to their eligibility
2) The date they become eligible.
**So some time in the three months prior to achieving eligibility
Safe Harbor Notice must include these 8 things. Correct Ans-1) What types of contributions
Employer is making
2) To what specific plans these contributions will go
3) Type/Amount of allowed deferred compensation
