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CEBS RPA 1 EXAM WITH 350 QUESTIONS AND CORRECT
DETAILED SOLUTIONS LATEST UPDATED VERSION JUST
RELEASED
Question: A distribution from a Roth IRA is a qualified distribution if it meets any of the
following requirements, EXCEPT:
A) The taxpayer has died and payment is made to a beneficiary or to the individual's estate
B) The taxpayer has attained the age of 59 1/2
C) The taxpayer is disabled
D) The distribution is made to pay first-time home buyer expenses and does not exceed $10,000
E) The taxpayer declares bankruptcy - ANSWER✔✔EXCEPT if E) The taxpayer declares
bankruptcy
(Study Guide, Module 10 pg. 9 and Text pg. 259)
Question: The distinct operational functions involved in 401(k) plan management include all of
the following, EXCEPT:
A) Plan communication
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B) Investment management services
C) Business advising
D) Plan compliance
E) Recordkeeping services - ANSWER✔✔Except C) Business advising
(Study Guide, Module 7 pg. 8-9 and Text pg 176-77)
Question: What is the maximum annual dollar amount a participant can contribute to a 457
plan in 2024?
A) $35,000
B) $48,000
C) $23,000
D) $28,000
E) $69,000 - ANSWER✔✔$23,000
(Study Guide, Module 8 pg. 16 and Text pg. 209-210)
Question: When it comes to correcting excess contributions to 401(k) plans, all the following
are true, EXCEPT:
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A) If excess contributions are distributed after the first critical date but before the end of the
plan year following the plan year in which the excess occurred (i.e. the second critical date), the
amount returned is taken into income in the year of distribution.
B) Excess contributions returned within 2.5 months after the end of the plan year in which the
excess occurred (the first critical date), the excess will be considered as income on the earliest
date that amounts deferred for the plan year being tested would have been received in cash.
C) A return of after-tax contributions would be taxable
D) Excess contributions that are not returned by the second critical date could result in
disqualification of the plan for the year in question. - ANSWER✔✔EXCEPT C) A return of after-
tax contributions would be taxable.
(Study Guide, Module 6 pg. 20 and Text pg. 159-60)
Question: Which investment theory emphasizes that investment risk is an inherent part of
higher reward?
A) Rational expectations theory
B) Modern portfolio theory
C) Prospect theory
D) Strategic asset allocation - ANSWER✔✔B. Modern portfolio theory
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(Study Guide, Module 7 pg. 14 and Text pg. 180-81)
Question: All of the following types of contributions were ushered in with the passage of the
SECURE 2.0 Act, EXCEPT:
A) Roth matching and non-elective contributions
B) Emergency Savings Account
C) Mandatory Roth catch-up contributions for high earners
D) Designated Roth contributions
E) Matching contributions on student loan payments - ANSWER✔✔EXCEPT D) Designated Roth
contributions
(Module 6 pg. 10-12 and Text pg. 146-49)
Q: All of the following are true of money purchase pension, EXCEPT:
A) These plans are defined contribution plans that traditionally served as pension plans.
B) Employer contributions are either a fixed percentage of pay or a fixed dollar amount
C) These plans were used frequently prior to EGTRRA
CEBS RPA 1 EXAM WITH 350 QUESTIONS AND CORRECT
DETAILED SOLUTIONS LATEST UPDATED VERSION JUST
RELEASED
Question: A distribution from a Roth IRA is a qualified distribution if it meets any of the
following requirements, EXCEPT:
A) The taxpayer has died and payment is made to a beneficiary or to the individual's estate
B) The taxpayer has attained the age of 59 1/2
C) The taxpayer is disabled
D) The distribution is made to pay first-time home buyer expenses and does not exceed $10,000
E) The taxpayer declares bankruptcy - ANSWER✔✔EXCEPT if E) The taxpayer declares
bankruptcy
(Study Guide, Module 10 pg. 9 and Text pg. 259)
Question: The distinct operational functions involved in 401(k) plan management include all of
the following, EXCEPT:
A) Plan communication
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B) Investment management services
C) Business advising
D) Plan compliance
E) Recordkeeping services - ANSWER✔✔Except C) Business advising
(Study Guide, Module 7 pg. 8-9 and Text pg 176-77)
Question: What is the maximum annual dollar amount a participant can contribute to a 457
plan in 2024?
A) $35,000
B) $48,000
C) $23,000
D) $28,000
E) $69,000 - ANSWER✔✔$23,000
(Study Guide, Module 8 pg. 16 and Text pg. 209-210)
Question: When it comes to correcting excess contributions to 401(k) plans, all the following
are true, EXCEPT:
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A) If excess contributions are distributed after the first critical date but before the end of the
plan year following the plan year in which the excess occurred (i.e. the second critical date), the
amount returned is taken into income in the year of distribution.
B) Excess contributions returned within 2.5 months after the end of the plan year in which the
excess occurred (the first critical date), the excess will be considered as income on the earliest
date that amounts deferred for the plan year being tested would have been received in cash.
C) A return of after-tax contributions would be taxable
D) Excess contributions that are not returned by the second critical date could result in
disqualification of the plan for the year in question. - ANSWER✔✔EXCEPT C) A return of after-
tax contributions would be taxable.
(Study Guide, Module 6 pg. 20 and Text pg. 159-60)
Question: Which investment theory emphasizes that investment risk is an inherent part of
higher reward?
A) Rational expectations theory
B) Modern portfolio theory
C) Prospect theory
D) Strategic asset allocation - ANSWER✔✔B. Modern portfolio theory
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(Study Guide, Module 7 pg. 14 and Text pg. 180-81)
Question: All of the following types of contributions were ushered in with the passage of the
SECURE 2.0 Act, EXCEPT:
A) Roth matching and non-elective contributions
B) Emergency Savings Account
C) Mandatory Roth catch-up contributions for high earners
D) Designated Roth contributions
E) Matching contributions on student loan payments - ANSWER✔✔EXCEPT D) Designated Roth
contributions
(Module 6 pg. 10-12 and Text pg. 146-49)
Q: All of the following are true of money purchase pension, EXCEPT:
A) These plans are defined contribution plans that traditionally served as pension plans.
B) Employer contributions are either a fixed percentage of pay or a fixed dollar amount
C) These plans were used frequently prior to EGTRRA
