QKA Certification Practice Exam | Latest
2025/2026 Complete Exam Prep & Verified
Q&A PDF
Determine the max elective deferral in 2021
age:35
Compensation: 50,000
only contributions are elective deferrals - correct answer19,500
participants may defer up to the LESSER of 19,5000 or 100% of compensation
catch-up contributions may only be made by participants who are age 50 (6,500)
Dianne has recently started employment with a new company and wants to roll over her
balance (entirely pretax) from her prior employers 401k plan into her new employers
401k plan.
What rules apply to the rollover - correct answerPlan provisions do not have to allow
rollovers
rollovers of direct distributions must be completed within 60 days of distribution
there is no tax with holding on direct rollovers
place that accept rollovers may but are not required to accept loans as part of rollover
Rother earnings may be distributed tax free - correct answerif the 5 year holding period
has been met
or
death, disability, or attainment of 59 1/2
What is the latest date an employer can cash out unused vacation time for a terminated
participant and have it count as compensation for deferral purposes - correct answerthe
LATER of 2 1/2 months after severance or the end of the limitation year in which
employment terminated may be deferred against if the plan provision allows
Plan is a calendar year allows max deferral amount and catch up contributions
participant is 55
compensation 100,000
,what is the max elective deferral? - correct answerElective deferrals are both pre-tax
and Roth deferrals
for those under 50, its the LESSER of 19,500 or 100% of compensation
Those over 50 may contribute another 6,500
This persons max is 26,000
Discretionary nonelective employer contributions - correct answera plan can require all
participants be employed at the end of the plan year in order to receive an allocation
if plan imposes hours of service, anyone who reached 1000 hours must be credited
many plans waive the allocation requirements for disable participants
Elective deferrals, after tax contributions, all employer contributions, and forfeitures are -
correct answerAnnul additions.
Limit is the LESSER of a participants 415 compensation or statutory dollar limit for the
year - correct answerAnnual Additions limit
Integration level cannot be more than - correct answer100% TWB
TWB is the wages taken into account to - correct answerdetermine social security
benefits. The collection of Social Security benefits does not impact the level of plan
benefits
100 TWB or 20% of TWB what percentage do you use? - correct answer5.7%
Cross testing allocation method is not a designed based - correct answersafe harbor
allocation
nondiscrimination testing must be performed every year to demonstrate - correct
answerthat allocation do not discriminate in favor of HCEs
the gateway test is only required to be satisfied if a plan wants to - correct answertest
allocations for nondiscrimination using cross testing
what are the 2 ways to satisfy the gateway test - correct answereach NHCE an
allocation for least 5% of IRC 415 compensation
or
, allocation rate for any NHCE who benefits under the plan is at least 1/3 of the highest
allocation rate for any HCE who benefits under the plan
excess annual additions can be corrected by - correct answerreallocating such amounts
to other participants.
Plans may also refund after tax contributions or elective deferrals to participants or hold
the excess in the suspense account
A plan uses nonelective safe harbor contributions to satisfy the ADP safe harbor
contributions requirement. Which of the following matching contributions satisfies the
safe harbor ACP requirement - correct answerTo satisfy the ACP safe harbor
contribution is the plan also satisfy the ADP safe harbor.
The second requirement that is matched contributions can only be made on deferrals up
to the first 6% of compensation.
The last requirements is that if the match is discretionary, then the total match cannot
exceed 4% of compensation
Top Heavy specs - correct answerif more than 60% of plan assets belong to HCE
you have to make a 3% contribution to the NHCE and nothing to HCE
nondiscrimination correction - correct answerif you fail the adp and acp testing, you can
make a contribution via QNEC to just NHCE
QACA basic and enhanced matching contribution requirements are - correct
answerLess than the basic and enhanced matching requirements for traditional safe
harbor plan.
if the plan satisfies the traditional ADP safe harbor contribution requirements, it will also
satisfy the QACA safe harbor contribution requirements
The ADP and ACP provisions must be set forth in the plan documents. They are used
automatically to satisfy the - correct answernondiscrimination test for elective deferrals
and matching contributions.
Safe harbor contributions must be made no lather than - correct answer12 months after
the plan year
The ADP safe harbor contributions cannot be conditions on - correct answera
participant being employed at year end in order to receive the contribution
the traditional ADP safe harbor matching contribution is - correct answer100% on the
first 3% of deferrals plus 50% of deferrals on the next 2% of compensation deferred.
2025/2026 Complete Exam Prep & Verified
Q&A PDF
Determine the max elective deferral in 2021
age:35
Compensation: 50,000
only contributions are elective deferrals - correct answer19,500
participants may defer up to the LESSER of 19,5000 or 100% of compensation
catch-up contributions may only be made by participants who are age 50 (6,500)
Dianne has recently started employment with a new company and wants to roll over her
balance (entirely pretax) from her prior employers 401k plan into her new employers
401k plan.
What rules apply to the rollover - correct answerPlan provisions do not have to allow
rollovers
rollovers of direct distributions must be completed within 60 days of distribution
there is no tax with holding on direct rollovers
place that accept rollovers may but are not required to accept loans as part of rollover
Rother earnings may be distributed tax free - correct answerif the 5 year holding period
has been met
or
death, disability, or attainment of 59 1/2
What is the latest date an employer can cash out unused vacation time for a terminated
participant and have it count as compensation for deferral purposes - correct answerthe
LATER of 2 1/2 months after severance or the end of the limitation year in which
employment terminated may be deferred against if the plan provision allows
Plan is a calendar year allows max deferral amount and catch up contributions
participant is 55
compensation 100,000
,what is the max elective deferral? - correct answerElective deferrals are both pre-tax
and Roth deferrals
for those under 50, its the LESSER of 19,500 or 100% of compensation
Those over 50 may contribute another 6,500
This persons max is 26,000
Discretionary nonelective employer contributions - correct answera plan can require all
participants be employed at the end of the plan year in order to receive an allocation
if plan imposes hours of service, anyone who reached 1000 hours must be credited
many plans waive the allocation requirements for disable participants
Elective deferrals, after tax contributions, all employer contributions, and forfeitures are -
correct answerAnnul additions.
Limit is the LESSER of a participants 415 compensation or statutory dollar limit for the
year - correct answerAnnual Additions limit
Integration level cannot be more than - correct answer100% TWB
TWB is the wages taken into account to - correct answerdetermine social security
benefits. The collection of Social Security benefits does not impact the level of plan
benefits
100 TWB or 20% of TWB what percentage do you use? - correct answer5.7%
Cross testing allocation method is not a designed based - correct answersafe harbor
allocation
nondiscrimination testing must be performed every year to demonstrate - correct
answerthat allocation do not discriminate in favor of HCEs
the gateway test is only required to be satisfied if a plan wants to - correct answertest
allocations for nondiscrimination using cross testing
what are the 2 ways to satisfy the gateway test - correct answereach NHCE an
allocation for least 5% of IRC 415 compensation
or
, allocation rate for any NHCE who benefits under the plan is at least 1/3 of the highest
allocation rate for any HCE who benefits under the plan
excess annual additions can be corrected by - correct answerreallocating such amounts
to other participants.
Plans may also refund after tax contributions or elective deferrals to participants or hold
the excess in the suspense account
A plan uses nonelective safe harbor contributions to satisfy the ADP safe harbor
contributions requirement. Which of the following matching contributions satisfies the
safe harbor ACP requirement - correct answerTo satisfy the ACP safe harbor
contribution is the plan also satisfy the ADP safe harbor.
The second requirement that is matched contributions can only be made on deferrals up
to the first 6% of compensation.
The last requirements is that if the match is discretionary, then the total match cannot
exceed 4% of compensation
Top Heavy specs - correct answerif more than 60% of plan assets belong to HCE
you have to make a 3% contribution to the NHCE and nothing to HCE
nondiscrimination correction - correct answerif you fail the adp and acp testing, you can
make a contribution via QNEC to just NHCE
QACA basic and enhanced matching contribution requirements are - correct
answerLess than the basic and enhanced matching requirements for traditional safe
harbor plan.
if the plan satisfies the traditional ADP safe harbor contribution requirements, it will also
satisfy the QACA safe harbor contribution requirements
The ADP and ACP provisions must be set forth in the plan documents. They are used
automatically to satisfy the - correct answernondiscrimination test for elective deferrals
and matching contributions.
Safe harbor contributions must be made no lather than - correct answer12 months after
the plan year
The ADP safe harbor contributions cannot be conditions on - correct answera
participant being employed at year end in order to receive the contribution
the traditional ADP safe harbor matching contribution is - correct answer100% on the
first 3% of deferrals plus 50% of deferrals on the next 2% of compensation deferred.
