RPA 1 FINAL EXAM 2025/26: 90+ QUESTIONS AND 100%
VERIFIED ANSWERS | GRADED A+ | GUARANTEED PASS!!
A 401(k) plan whose investment choices only consist of mutual fund offerings
could potentially incur all of the following types of expenses
- answer-- Recurring administrative costs
- Investment and management fees
- Communication expenses
- Distribution or marketing expense
A CODA may be part of what type of plans
- answer-- pre-ERIS money purchase plan
- stock bonus plan
- rural electric cooperative plan
- profit sharing plan
Active-service withdrawals from qualified profit sharing plans
- answer-- participants may withdraw a portion of their vested benefit while
actively employed
- may restrict the right to withdraw to employee contributions
- tax law permits the withrawal of funds upon the happening of an event such as a
hardship
- IRS allows withdrawal of funds from a profit sharing plan upon the completion of
five years of plan participation
All of the following are characteristics of savings incentive match plans for
employees (SIMPLE plans)
- answer-- The may be established as either IRAs or 401ks
- employers may make matching contributions to SIMPLE plans
- employers may make nonelective contributions to SIMPLE plans
- they may be established by employed with 100 or fewer employees with a
specified minimum level of compensation
All of the following are decision elements in the initial design and ongoing
administration of a 401(k) plan
- answer-Ways in which plan sponsors...
- design the plan
- handle continuing administrative tasks
,- communicate plan offerings and features
- ways in which plan sponsor will serve as a discretionary trustee
All of the following are key provisions enacted by the Economic Growth and Tax
Relief Reconciliation Act of 2001
- answer-- Increased contribution, benefit deduction limits for all types of
retirement savings vehicles
- created qualified Roth contribution programs
- increased contribution limit amounts for retirement plan participants aged 50 and
older- Eased rules for rollover distributions among various types of plans
An employer can take which of the following actions regarding a retirement plan
covering organized workers without the approval of the authorized bargaining
agent for those employees?
-Install a retirement plan
-Terminate a retirement plan
-Alter the terms of a retirement plan
- answer-None
An example of a sponsor of a 403(b) plan is
- answer-public college
Broad categories of defined benefit formulas
- answer-- flat amount formulas
- flat amount per year of service formulas
- percentage of earnings per year of service formulas
- flat percentage of earnings forumulas
Changes enacted by the PPA 2006 with important implications for 401k are
- answer-amended the ERISA to expliciltyly preempt any state wage and hour law
that may prohibit or restrict auto enrollment
- extended conditions that would allow hardship distributions
- imposed stricter diversification requirements to plans of public traded companies
that hold publicly traded securities
- act made changes in the notice and consent rules applicable when plan
distributions occur
, Characteristics of a money purchase plan
- answer-- ability of participants to make investment decisions regarding their
accounts
- lump sum distribution in the event of the employee's death
- in-service withdrawals not permitted
- loans available form the plan
Characteristics of profit-sharing plans
- answer-- THey can be structured with either a discretionary formula or a
predetermined formula for employer contribtuions
- They can allow employee contributions
- The can be used with a 401k provision
- Their employer contributions can reach 25% of employee compensation
Contributions to a profit sharing plan must be made on
- answer-A substantial and reoccurring basis
Design features in an executive retirement plan typically is consistent with broad-
based qualified retirement plans maintained by the plan sponsor
- answer-- form and manner in which benefits are distributed
- right to make and change beneficiary designations
- right to amend or terminate plan
- state law that will govern plan interpretation
Distributions from a traditional IRA
- answer-- Excess accumulation in an IRA is subject to an excise tax of 50%.
- Lump-sum distributions from an IRA do not qualify for long-term capital gains
treatment.
- Distributions from an IRA used to pay medical expenses exceeding a stipulated
percentage of adjusted gross income are free of the 10% penalty tax on early
withdrawals
- traditional IRA died before the entire interest is distributed, the required
distribution to the beneficiary depends upon whether distributions to the IRA
owner had already been required to start by the date he or she died.
Economic Benefit
- answer-A theory of income taxation that imposes current tax liability on
taxpayers who receive something of reasonable value is known as the doctrine of:
VERIFIED ANSWERS | GRADED A+ | GUARANTEED PASS!!
A 401(k) plan whose investment choices only consist of mutual fund offerings
could potentially incur all of the following types of expenses
- answer-- Recurring administrative costs
- Investment and management fees
- Communication expenses
- Distribution or marketing expense
A CODA may be part of what type of plans
- answer-- pre-ERIS money purchase plan
- stock bonus plan
- rural electric cooperative plan
- profit sharing plan
Active-service withdrawals from qualified profit sharing plans
- answer-- participants may withdraw a portion of their vested benefit while
actively employed
- may restrict the right to withdraw to employee contributions
- tax law permits the withrawal of funds upon the happening of an event such as a
hardship
- IRS allows withdrawal of funds from a profit sharing plan upon the completion of
five years of plan participation
All of the following are characteristics of savings incentive match plans for
employees (SIMPLE plans)
- answer-- The may be established as either IRAs or 401ks
- employers may make matching contributions to SIMPLE plans
- employers may make nonelective contributions to SIMPLE plans
- they may be established by employed with 100 or fewer employees with a
specified minimum level of compensation
All of the following are decision elements in the initial design and ongoing
administration of a 401(k) plan
- answer-Ways in which plan sponsors...
- design the plan
- handle continuing administrative tasks
,- communicate plan offerings and features
- ways in which plan sponsor will serve as a discretionary trustee
All of the following are key provisions enacted by the Economic Growth and Tax
Relief Reconciliation Act of 2001
- answer-- Increased contribution, benefit deduction limits for all types of
retirement savings vehicles
- created qualified Roth contribution programs
- increased contribution limit amounts for retirement plan participants aged 50 and
older- Eased rules for rollover distributions among various types of plans
An employer can take which of the following actions regarding a retirement plan
covering organized workers without the approval of the authorized bargaining
agent for those employees?
-Install a retirement plan
-Terminate a retirement plan
-Alter the terms of a retirement plan
- answer-None
An example of a sponsor of a 403(b) plan is
- answer-public college
Broad categories of defined benefit formulas
- answer-- flat amount formulas
- flat amount per year of service formulas
- percentage of earnings per year of service formulas
- flat percentage of earnings forumulas
Changes enacted by the PPA 2006 with important implications for 401k are
- answer-amended the ERISA to expliciltyly preempt any state wage and hour law
that may prohibit or restrict auto enrollment
- extended conditions that would allow hardship distributions
- imposed stricter diversification requirements to plans of public traded companies
that hold publicly traded securities
- act made changes in the notice and consent rules applicable when plan
distributions occur
, Characteristics of a money purchase plan
- answer-- ability of participants to make investment decisions regarding their
accounts
- lump sum distribution in the event of the employee's death
- in-service withdrawals not permitted
- loans available form the plan
Characteristics of profit-sharing plans
- answer-- THey can be structured with either a discretionary formula or a
predetermined formula for employer contribtuions
- They can allow employee contributions
- The can be used with a 401k provision
- Their employer contributions can reach 25% of employee compensation
Contributions to a profit sharing plan must be made on
- answer-A substantial and reoccurring basis
Design features in an executive retirement plan typically is consistent with broad-
based qualified retirement plans maintained by the plan sponsor
- answer-- form and manner in which benefits are distributed
- right to make and change beneficiary designations
- right to amend or terminate plan
- state law that will govern plan interpretation
Distributions from a traditional IRA
- answer-- Excess accumulation in an IRA is subject to an excise tax of 50%.
- Lump-sum distributions from an IRA do not qualify for long-term capital gains
treatment.
- Distributions from an IRA used to pay medical expenses exceeding a stipulated
percentage of adjusted gross income are free of the 10% penalty tax on early
withdrawals
- traditional IRA died before the entire interest is distributed, the required
distribution to the beneficiary depends upon whether distributions to the IRA
owner had already been required to start by the date he or she died.
Economic Benefit
- answer-A theory of income taxation that imposes current tax liability on
taxpayers who receive something of reasonable value is known as the doctrine of:
