Page 1 of 28
NAPA CPFA® CERTIFICATION EXAM | {LATEST
2026/ 2027 UPDATE} COMPLETE ACTUAL AND
AUTHENTIC EXAM | BRAND NEW!
Describe impact of cash flow and budget on plan design - ✔✔✔
Correct Answer > • May need to be treated as a SINGLE employer
• One related company may need to make contributions
to employees at another related company
• All employees may be required to be eligible under the
same plan
• As the advisor, always have plan sponsor contact an
experienced service provider or ERISA counsel
Compare and contrast IRA-based plans to 401(k) plans - ✔✔✔
Correct Answer > SEP (Simplified
Employee Pension):
Similar to profit sharing,
invested in IRAs
Employer contributions
only, 100% vested
,Page 2 of 28
Compare and contrast IRA-based plans to 401(k) plans - ✔✔✔
Correct Answer > SIMPLE IRA:
Similar to 401(k) Safe Harbor
(but with lower annual limits)
Employee and required
employer contributions
May not maintain a SIMPLE
IRA and a qualified plan
Compare and contrast IRA-based plans to 401(k) plans - ✔✔✔
Correct Answer > SIMPLE 401(k):
Cross between SIMPLE IRA
and a 401(k) Safe Harbor
Employee and required
employer contributions
All the requirements of a 401(k)
Plan but with lower limits
Explain hybrid plan combinations - ✔✔✔ Correct Answer > combines
elements of a traditional defined benefit (DB) pension plan and a
defined contribution (DC) plan that is similar to a 401(k).
, Page 3 of 28
Explain plan features - ✔✔✔ Correct Answer > Eligibility and
Participation
Compensation
Contributions
Vesting
Distributions/Loans
Summarize how plan features support plan goals and objectives
- ✔✔✔ Correct Answer > Eligibility and participation:
What employees are allowed/not allowed to participate
Age/service requirements
Compensation:
Must be defined (ex. W-2), exclusions can be problematic
Maximum limit (set by IRC)
Contributions:
401(k), Roth, Match, SH, PS
Vesting:
Applies to employer contributions (match, profit-
sharing)
Usually based on years of service
Not applicable to: 401(k), safe harbor, rollovers
NAPA CPFA® CERTIFICATION EXAM | {LATEST
2026/ 2027 UPDATE} COMPLETE ACTUAL AND
AUTHENTIC EXAM | BRAND NEW!
Describe impact of cash flow and budget on plan design - ✔✔✔
Correct Answer > • May need to be treated as a SINGLE employer
• One related company may need to make contributions
to employees at another related company
• All employees may be required to be eligible under the
same plan
• As the advisor, always have plan sponsor contact an
experienced service provider or ERISA counsel
Compare and contrast IRA-based plans to 401(k) plans - ✔✔✔
Correct Answer > SEP (Simplified
Employee Pension):
Similar to profit sharing,
invested in IRAs
Employer contributions
only, 100% vested
,Page 2 of 28
Compare and contrast IRA-based plans to 401(k) plans - ✔✔✔
Correct Answer > SIMPLE IRA:
Similar to 401(k) Safe Harbor
(but with lower annual limits)
Employee and required
employer contributions
May not maintain a SIMPLE
IRA and a qualified plan
Compare and contrast IRA-based plans to 401(k) plans - ✔✔✔
Correct Answer > SIMPLE 401(k):
Cross between SIMPLE IRA
and a 401(k) Safe Harbor
Employee and required
employer contributions
All the requirements of a 401(k)
Plan but with lower limits
Explain hybrid plan combinations - ✔✔✔ Correct Answer > combines
elements of a traditional defined benefit (DB) pension plan and a
defined contribution (DC) plan that is similar to a 401(k).
, Page 3 of 28
Explain plan features - ✔✔✔ Correct Answer > Eligibility and
Participation
Compensation
Contributions
Vesting
Distributions/Loans
Summarize how plan features support plan goals and objectives
- ✔✔✔ Correct Answer > Eligibility and participation:
What employees are allowed/not allowed to participate
Age/service requirements
Compensation:
Must be defined (ex. W-2), exclusions can be problematic
Maximum limit (set by IRC)
Contributions:
401(k), Roth, Match, SH, PS
Vesting:
Applies to employer contributions (match, profit-
sharing)
Usually based on years of service
Not applicable to: 401(k), safe harbor, rollovers
