NAPA CPFA Certification Exam V2 2026/2027 | Certified Plan Fiduciary Advisor | Verified Questions & Answers | Grade A

NAPA CPFA Certification Exam V2 2026/2027 | Certified Plan Fiduciary Advisor | Verified Questions & Answers | Grade A ERISA requires that fiduciaries manage the plan for the exclusive benefit of which of the following parties? a. Participants and their beneficiaries b. Plan Sponsor c. Plan Administrator d. Business owner a. Participants and their beneficiaries June is a Plan Sponsor of a small plan and decided she'll be acting as the sole fiduciary of the plan. All of the following are her responsibilities, EXCEPT: a. Give investment advice to participants b. Fill the role of Plan Administrator c. Follow a prudent process when hiring service providers d. Sign and file the Form 5500 a. Give investment advice to participants Under ERISA, the Plan Administrator has the following roles, EXCEPT: a. Providing participants with a summary plan description b. Redesigning the plan's employer matching contribution formula c. Distributing required notices to participants d. Providing the plan document to participants who request a copy b. Redesigning the plan's employer matching contribution formula Under ERISA, all of the following are Plan Trustee responsibilities, EXCEPT: a. Monitor the investment manager whom the Plan Trustee hired. b. Oversee the Plan Administrator. c. Delegate specific investment duties to a service provider and monitor the service provider's performance. d. Follow participant directions for the investment of contributions, unless the instructions conflict with ERISA. b. Oversee the Plan Administrator. All of the following may be named fiduciaries in a plan document, EXCEPT: a. Plan Sponsor b. Plan Administrator c. Plan Trustee d. Legal counsel who prepares the plan document d. Legal counsel who prepares the plan document Sue is a plan advisor for the ABC Retirement Plan. On the agenda for the upcoming ABC Plan Committee meeting is an action item to replace Len and nominate a new member to the Committee. Len has been asked to leave the Committee due to his unsatisfactory attendance at monthly meetings. All of the following are best practices regarding fiduciary changes, EXCEPT: a. Per Len's request, the Committee minutes will exclude the reason Len was asked to leave the committee. b. Sue should educate the members on the importance of documenting fiduciary changes. c. The Committee minutes should document the process of naming Len's replacement. d. The new member should be informed of the goals of the Committee and attendance requirements. a. Per Len's request, the Committee minutes will exclude the reason Len was asked to leave the committee. Sharon is a 3(21) advisor. She is meeting with a potential client and is preparing for her meeting. All of the following are services that Sharon may offer the prospect, EXCEPT: a. Attend the client's investment committee meetings. b. Create the agendas for the client's investment committee meetings. c. Assist with the review of the investments. d. Make decision to replace funds on the watch list pursuant to the investment policy statement, prior to attending the investment committee meeting. d. Make decision to replace funds on the watch list pursuant to the investment policy statement, prior to attending the investment committee meeting. All of the following represent potential breaches of fiduciary responsibility by plan fiduciaries, EXCEPT: a. A Plan Trustee delegates some of his responsibilities to a discretionary trustee who he continues to monitor. b. A Plan Sponsor chooses a bank's recordkeeping service without performing due diligence because the bank provides reduced rates on corporate banking services. c. A Plan Trustee deposits weekly payroll deferrals at the end of the quarter. d. A Plan Sponsor appoints a consultant to monitor the plan's service provider but then ignores the consultant's findings. a. A Plan Trustee delegates some of his responsibilities to a discretionary trustee who he continues to monitor. All of the following statements represent the DOL's role in overseeing plans, EXCEPT: a. Upon investigation the DOL may request information to identify whether a prohibited transaction has occurred. b. The DOL has provided correction methods for specific prohibited transactions. c. The DOL and IRS work together to coordinate enforcement on prohibited transaction issues. d. A DOL investigation letter will usually ask for no more than five items related to the plan's operation. d. A DOL investigation letter will usually ask for no more than five items related to the plan's operation. Which statement regarding the IRS and DOL correction programs is TRUE? a. The IRS and DOL correction programs cover identical plan errors. b. The Voluntary Fiduciary Correction Program can be used only when an error is found during a DOL investigation. c. The DOL website includes an online calculator that calculates earnings amounts to be paid to the plan. d. The Employee Plans Compliance Resolution System is used to correct prohibited transaction violations. c. The DOL website includes an online calculator that calculates earnings amounts to be paid to the plan. All of the following statements describe characteristics of ERISA fidelity bonds and fiduciary insurance, EXCEPT: a. Fiduciary insurance may protect plan fiduciaries from losses resulting from errors. b. ERISA fidelity bond protects the employee from any error made when submitting contributions to a service provider. c. Plan assets may be used to purchase a fidelity bond. d. An ERISA fidelity bond may be set-up as a blanket bond that covers all officers, directors, and employees of a plan sponsor. b. ERISA fidelity bond protects the employee from any error made when submitting contributions to a service provider. (Insurance protects fiduciaries, bond is required and protects assets from theft and fraud) Larry is the owner of DEF Company. Which of Larry's activities is considered a fiduciary function? a. Establishes a 401(k) plan for his company. b. Determines the plan's employer matching contribution formula. c. Hires the plan's investment advisor. d. Decides to terminate the 401(k) plan. c. Hires the plan's investment advisor. All of the following documents should be maintained to show fiduciary best practices, EXCEPT: a. Current fee benchmarking report for administration services b. Documentation of selection process for new payroll vendor c. Copies of retirement plan committee meeting minutes d. Copies of retirement plan committee agendas b. Documentation of selection process for new payroll vendor All of the following documents are updated annually, EXCEPT: a. 404(a)(5) participant fee disclosure b. Plan document c. Qualified default investment alternative notice d. Safe Harbor Matching 401(k) notices b. Plan document All of the following are consequences of fiduciary breaches, EXCEPT: a. A fiduciary should make good on any losses caused by his or her fiduciary breach. b. A fiduciary should restore any profits to the plan that had resulted due to his or her fiduciary breach. c. The corporate veil protects fiduciaries from personal liability. d. A fiduciary who has committed a breach may be removed and prohibited against serving as a fiduciary in the future. c. The corporate veil protects fiduciaries from personal liability. All of the following are best practices for determining the reasonableness of plan fees, EXCEPT: a. Determine whether each individual expense is reasonable. b. Research revenue sharing arrangements to determine the underlying cost of services. c. Determine whether any expenses paid to fiduciaries have violated the conflict of interest rules. d. Owner-driven plans are not required to determine the reasonableness of plan fees due to their limited personnel and financial resources. d. Owner-driven plans are not required to determine the reasonableness of plan fees due to their limited personnel and financial resources. All of the following fees may be paid from the plan, EXCEPT: a. TPA fee for Form 5500 preparation b. Fee associated with union negotiations regarding retirement plan benefits c. Recordkeeper fee for maintaining participant accounts d. Investment advisory fee b. Fee associated with union negotiations regarding retirement plan benefits All of the following are parties-in-interest to the STU, Inc. Profit Sharing Plan, EXCEPT: a. Brian, who is a plan participant and the president's brother b. XYZ Inc., who is seeking to acquire STU, Inc. c. Independent auditor of the Plan's financial statements d. Legal counsel to the Plan b. XYZ Inc., who is seeking to acquire STU, Inc. ERISA defines the following as plan fiduciaries, EXCEPT: a. Plan Sponsor b. Plan Accountant c. Plan Trustee d. Plan Administrator b. Plan Accountant All of the following describe non-fiduciary individuals performing ministerial functions, EXCEPT: a. A benefits administrator prepares the summary plan description. b. A human resources director decides to fully vest a terminated employee because of his excellent work history c. An ERISA attorney updates a client's plan document to comply with current law. d. A payroll manager prepares the weekly deferral deposit and forwards it to the plan provider. b. A human resources director decides to fully vest a terminated employee because of his excellent work history Which statement regarding service providers is TRUE? a. A TPA performs annual compliance testing. b. A recordkeeper has the legal obligation to provide an interpretation of a plan provision. c. An accountant processes the "money out" for a participant withdrawal. d. A plan advisor is responsible for drafting annual safe harbor notices. a. A TPA performs annual compliance testing. All of the following are important factors when selecting a service provider, EXCEPT: a. Service provider's financial stability b. Experience with plans of similar size and complexity c. Willingness to provide revenue sharing to offset plan fees d. Qualifications of personnel that will service plan c. Willingness to provide revenue sharing to offset plan fees Which statement regarding bundled service arrangements is TRUE? a. Provides efficient contribution and distribution processes. b. Requires less fiduciary oversight than an unbundled service arrangement. c. Permits for a specific single provider within the arrangement to be easily removed and replaced with another provider. d. Typical arrangement involves a TPA and an insurance company. a. Provides efficient contribution and distribution processes. Based on behavioral finance research, which of the following is a best practice for producing successful participant outcomes? a. Combining auto-enrollment with targeted education. b. Adding a self-directed brokerage option. c. Re-enrolling all participants into equity investments. d. Offering group meetings that focus on participants' rational decision making. a. Combining auto-enrollment with targeted education. Company ABC and Company DEF are determined to be part of a related group of companies. All the following statements are TRUE, EXCEPT: a. The employees of both ABC and DEF may end up participating in one plan. b. ABC may be required to make contributions for its employees into DEF's plan. c. DEF has the right to "opt out" and be excluded from the related group. d. If DEF adopts a plan, ABC employees may be eligible for the plan. c. DEF has the right to "opt out" and be excluded from the related group. Which of the following plan designs may result in better participant deferral behavior? a. Adding an employer matching contribution equal to 25% up to 12% of compensation deferred b. Adding a 3% nonelective safe harbor contribution c. Adding a 1,000 hours of service requirement to receive the employer matching contribution d. Adding a profit-sharing contribution a. Adding an employer matching contribution equal to 25% up to 12% of compensation deferred An advisor is meeting with a Plan Sponsor to discuss contribution design in her plan. All of the following questions will help with this conversation, EXCEPT: a. Is there a goal that employees should be required to contribute to receive an employer contribution? b. Can participants convert their existing contribution accounts to Roth accounts? c. Is there a group of employees who are unlikely to participate in the plan? d. How important is it that employees are on track for adequate retirement income? b. Can participants convert their existing contribution accounts to Roth accounts? -Jake is a sole proprietor and has just established a software development company. -He has recently hired two employees. -Currently, the company does not have a good cash flow, but if Jake can hire more software engineers, growth and profits should increase. Based on the information above, all of the following are questions that an advisor should ask when establishing a plan for Jake's company, EXCEPT: a. Can the company's current cash flow support employer contributions? b. Does the company have an established line of credit? c. What are Jake's objectives for attracting future employees? d. Is Jake willing to make a fixed contribution if it enables him to save more? b. Does the company have an established line of credit? A partnership is a business that: a. Cannot have a limited liability structure. b. Has at least two partners. c. Is typically run by a board of directors. d. Reports income on Form 1120. b. Has at least two partners. All of the following describe the impact of a business's cash flow and budget when establishing a plan, EXCEPT: a. A plan advisor should inform the employer that required contributions will be waived for any year that the company does not make a profit. b. A plan advisor should explain a plan's contribution commitment to the employer. c. Employers should have a stable cash flow if they are considering adopting a Defined Benefit/Defined Contribution combination plan. d. A plan advisor may work with the service provider to show estimates of what employer contributions would be under different contribution formulas. a. A plan advisor should inform the employer that required contributions will be waived for any year that the company does not make a profit. Which of the following reports can be used in measuring plan effectiveness and participant outcomes? a. Number of terminated participants who elected to roll their accounts into IRAs b. Average deferral rate of participants in the plan c. Independent accountant's required annual audit of the plan d. Summary Annual Report b. Average deferral rate of participants in the plan All of the following are benefits of participant retirement readiness, EXCEPT: a. Employers can better manage their workforce needs. b. Participants receive a guarantee of lifetime income payments. c. Employees may be more satisfied with their jobs when working for an employer that actively promotes retirement readiness programs. d. Employers can work with service providers who have tools to assist participants in increasing retirement savings. b. Participants receive a guarantee of lifetime income payments. All of the following are items to consider when developing a strategy to promote successful participant outcomes, EXCEPT: a. What is the average life expectancy for the participants' beneficiaries? b. Should investment advice be offered? c. Is senior level management interested in promoting "retirement readiness"? d. What type of participant education should be provided? a. What is the average life expectancy for the participants' beneficiaries? All of the following statements describe the re-enrollment process of reinvesting participant accounts in the plan's asset allocation funds, EXCEPT: a. The re-enrollment of participant accounts is considered a behavioral finance method. b. Participants are given the opportunity to "opt-out" of the re-enrollment of their account balances. c. The goal of the re-enrollment process is to improve participant outcomes by automatically investing their account balances in asset allocation funds appropriate for their age. d. Participant notices are not required. d. Participant notices are not required. Which statement regarding IRA plans and 401(k) plans is TRUE? a. SIMPLE IRA plans are used to maximize plan benefits to owners. b. SIMPLE IRAs and 401(k)s have the same plan document requirements.) c. Participant loans are allowed from a SIMPLE 401(k) plan but not a SIMPLE IRA. d. An employer may sponsor a SIMPLE IRA and a profit-sharing plan concurrently. c. Participant loans are allowed from a SIMPLE 401(k) plan but not a SIMPLE IRA. A traditional 401(k) plan may be an appropriate choice for all of the following employers, EXCEPT: a. An employer who feels strongly that his or her employees should take an active role in saving for retirement. b. An employer whose first priority is to maximize his or her retirement savings. c. An employer who is paternalistic and wants to help employees save by enacting automatic enrollment provisions. d. An employer who wants to encourage employee participation with matching contributions. b. An employer whose first priority is to maximize his or her retirement savings. An owner-driven plan sponsor wants to retire in five to ten years. His company has a stable cash flow and ten employees. All of the following plan designs are compatible with the owner's goals, EXCEPT: a. 401(k) cross-tested safe harbor plan b. Defined benefit/defined contribution combination plan c. 401(k) safe harbor plan d. SIMPLE IRA d. SIMPLE IRA A 401(k) plan has poor participation among the rank-and-file employees. As a plan advisor, all of the following recommendations could boost plan participation, EXCEPT: a. Increasing the match amount from 25% to 50% of deferrals b. Allowing participant loans c. Adding a profit-sharing contribution based on years of service d. Add and auto-enrollment feature to the plan c. Adding a profit-sharing contribution based on years of service An owner-driven plan sponsor wants to know the advantages of a safe harbor 401(k) plan. All of the following are advantages EXCEPT: a. Safe harbor contributions can exempt the plan from the ADP test. b. Safe harbor contributions may be taken as a hardship withdrawal. c. Safe harbor contributions are discretionary. d. Safe harbor contributions can satisfy top-heavy minimum contribution requirements. c. Safe harbor contributions are discretionary. All of the following plan features are typically located in the plan's adoption agreement, EXCEPT: a. Availability of participant loans b. Availability of in-service withdrawals c. Matching contribution formula d. Definition of ERISA fiduciary roles and responsibilities d. Definition of ERISA fiduciary roles and responsibilities All of the following are advantages of the request for proposal (RFP) process in a participant driven plan, EXCEPT: a. The RFP allows the fiduciaries to delegate the selection of finalists to the plan advisor and the TPA. b. Plan advisor can assist the fiduciaries in compiling a list of potential service providers. c. Fiduciaries can make an "apples to apples" comparison of fees and services. d. The RFP and the responses can be part of the documentation that a prudent process was followed. a. The RFP allows the fiduciaries to delegate the selection of finalists to the plan advisor and the TPA. All of the following service providers may assist with plan document maintenance, EXCEPT: a. ERISA attorney b. Recordkeeper c. TPA firm d. Plan auditor d. Plan auditor A safe harbor 401(k) plan with a cross-tested profit-sharing contribution may be an appropriate choice for all of the following employers, EXCEPT: a. An employer who has some years where there are no profits b. A professional partnership with three partners and 50 employees c. A dentist's office with one owner and five employees d. A medical services company with 25 employees and two owners a. An employer who has some years where there are no profits All of the following describe the required participant disclosure process, EXCEPT: a. The Plan Administrator or Plan Sponsor can hire a 3(16) fiduciary to distribute required participant notices. b. The party that distributes required notices to participants is considered a fiduciary. c. Generally, a TPA may prepare the safe harbor 401(k) notice. d. The Plan Administrator is responsible for the required disclosures being distributed to the participants. b. The party that distributes required notices to participants is considered a fiduciary. Which statement regarding "to" and "through" target date funds is TRUE? a. If a majority of participants cash out of a plan upon retirement, a "through" strategy may be appropriate. b. A "to" target date fund may be a good choice if many retirees have account balances in the plan. c. A key difference between "to" and "through" target date funds are their glide paths. d. A "through" target date fund develops its asset allocation based on the participant's risk tolerance. c. A key difference between "to" and "through" target date funds are their glide paths. All of the following describe qualified default investment alternative (QDIA) rules, EXCEPT: a. A plan must use a QDIA as its default fund. b. Participants receive an initial QDIA notice when first defaulted into the QDIA. c. A balanced fund qualifies as a QDIA. d. An appropriate QDIA qualifies for fiduciary safe harbor relief. a. A plan must use a QDIA as its default fund. All of the following statements about revenue sharing are TRUE, EXCEPT: a. Excess revenue sharing can revert to the plan sponsor. b. Revenue sharing can be used to pay plan operational expenses. c. Revenue sharing can be credited to participant accounts. d. Revenue sharing is subject to the ERISA prudency rules. a. Excess revenue sharing can revert to the plan sponsor. Jack is a plan advisor and is meeting with his client, the JKL 401(k) Plan Committee to conduct an investment review. All of the following are best practices in an investment review, EXCEPT: a. Investment performance is compared against the investment policy statement criteria. b. Jack discusses the plan's demographics and how changes impact participant outcomes. c. Investments are put on the watch list if they do not meet the investment policy statement criteria. d. Investments that provide revenue sharing must be removed from the investment line-up. d. Investments that provide revenue sharing must be removed from the investment line-up. All of the following are components of gap analysis, EXCEPT: a. Projection of participant's current account balance through retirement b. Beneficiary's tax liability of account balance after participant's death c. Participant's deferral rate d. Projected investment return b. Beneficiary's tax liability of account balance after participant's death All of the following are best practices for monitoring plan investments, EXCEPT: a. Review investments to ensure they meet current plan goals. b. Document the investment qualitative analysis review. c. Document the reasons for retaining an investment with significantly higher than average expenses. d. Make changes based solely on quarterly investment results. d. Make changes based solely on quarterly investment results. All of the following are characteristics of target date funds, EXCEPT: a. They are designed so that the equity portion decreases as the fund nears a specified date. b. They are diversified to minimize the risk of large losses. c. They can be used to reduce fiduciary liability under the qualified default investment alternative rules. d. They require less fiduciary oversight than other types of funds. d. They require less fiduciary oversight than other types of funds. All of the following are characteristics of asset allocation funds, EXCEPT: a. They are generally designed to be the sole investment holding for a participant. b. They provide guaranteed retirement income for participants. c. They have exposure to multiple asset classes. d. They are designed to meet a specific objective. b. They provide guaranteed retirement income for participants. The JKL Company recently established a 401(k) Plan and hired Larry as its plan advisor. The Plan Committee, with Larry's assistance, has just finalized the investment policy statement. he next step is to start the investment selection process. Larry is planning to discuss all the following issues regarding investment selection, EXCEPT: a. The investment line-up should be diversified. b. Self-directed brokerage accounts may be offered only to investment savvy participants. c. Investment fees must be reasonable. d. The investments selected should represent asset classes across a risk/reward spectrum. b. Self-directed brokerage accounts may be offered only to investment savvy participants. A new client with a 401(k) plan wants to add funds to enhance the diversification of the Plan. Which of the following tasks should be completed first when considering adding funds to the plan? a. Prepare the new 404(a)(5) disclosures. b. Establish dates for employee meetings to explain the investment changes. c. Review the investment policy statement and confirm the asset classes permitted in the plan. d. Order new enrollment kits. c. Review the investment policy statement and confirm the asset classes permitted in the plan. Which of the following parties typically maintains the investment policy statement? a. Plan advisor b. CFO c. Plan accountant d. HR manager a. Plan advisor All the following statements regarding the timing of investment meetings are TRUE, EXCEPT: a. An investment policy statement must specifically state how often the investments are reviewed. b. A plan advisor may assist in the scheduling of investment meetings. c. An investment policy statement should be reviewed at least annually. d. Smaller, owner-driven plans typically perform an annual investment review. a. An investment policy statement must specifically state how often the investments are reviewed. The BIG fund has produced investment results consistently above its benchmarks. Recently, tobacco company stocks were added to its portfolio. Upon hearing the news, several members of the Retirement Plan committee declared their opposition to the tobacco industry and stated they wanted the fund removed from the investment line-up. The investment policy statement (IPS) does not include any selection criteria regarding ESG investing. The Committee may take all the following actions, EXCEPT: a. If the Committee decides to remove the fund, the IPS must be updated to permit this removal. b. The Committee must consider the participants' needs. c. No action can be taken due to the fund's superior performance. d. The issue should be documented. c. No action can be taken due to the fund's superior performance. Which statement describes a benefit of using target date funds as a qualified default investment alternative? a. They offer a professionally managed investment. b. They provide a guaranteed rate of interest. c. They require minimal fiduciary oversight. d. They guarantee against loss of principal. a. They offer a professionally managed investment. Which statement regarding investment options is TRUE? a. Asset allocation funds are designed to be the sole investment holding for a participant. b. Collective investment funds are managed by insurance companies. c. Balanced funds are designed to shift to more conservative investments as the participant ages. d. Stable value funds are a good choice for a qualified default investment alternative a. Asset allocation funds are designed to be the sole investment holding for a participant. All of the following statements generally describe passively managed investment funds, EXCEPT: a. Funds that use a passive strategy manage to a market benchmark. b. Passive investment managers believe in market efficiency. c. Passive funds generally offer significantly more revenue sharing than other investment options. d. Passive funds generally have lower investment costs than actively managed funds. c. Passive funds generally offer significantly more revenue sharing than other investment options. Louis is a plan advisor who is preparing for his initial meeting with the Investment Committee of a new client. While reviewing previous meeting minutes, he notices that the Committee wants to expand its core fund line-up. In the upcoming meeting, Louis may discuss all the following issues regarding a prudent investment selection process, EXCEPT: a. It is a best practice to document the process used for selecting the new investments. b. A plan is required to offer passively managed funds as part of an expanded core line-up. c. It is prudent to review the investment policy statement before making changes to the investment line-up. d. Expanding the core line-up is a fiduciary responsibility, but it does not need to be performed by a 3(21) or 3(38) advisor. b. A plan is required to offer passively managed funds as part of an expanded core line-up. All the following are prudent practices for creating an investment policy statement (IPS), EXCEPT: a. A plan advisor may assist the plan fiduciaries in drafting an IPS. b. An IPS should outline a prudent process for the monitoring of investments c. An IPS should avoid the specificity that can be a "roadmap for a lawsuit." d. An IPS must include a listing of all investments offered by the plan. d. An IPS must include a listing of all investments offered by the plan. All the following are characteristics of asset allocation funds, EXCEPT: a. Target date funds automatically shift their asset allocation as a participant advances toward retirement. b. Lifestyle funds do not accommodate a participant's change in risk tolerance. c. Target date funds may not always be consistent with the participant's risk profile. d. Target date funds and target risk funds both have glide paths. d. Target date funds and target risk funds both have glide paths. All the following are concepts that advisors should explain to Plan Sponsors about their duty to diversify plan investments and minimize the risk of large losses, EXCEPT: a. How asset classes work b. What constitutes a prudent asset allocation strategy c. Plans must include alternative investments d. Meeting different risk and retirement goals of participants c. Plans must include alternative investments All of the following are attributes of an effective Retirement Plan Committee, EXCEPT: a. Members must commit to serve for a three-year period. b. Number of members are an odd number to facilitate the voting process. c. Members use a Fiduciary checklist when performing their duties. d. Meetings are held at least annually. a. Members must commit to serve for a three-year period. All of the following are actions of an effective Retirement Plan committee, EXCEPT: a. Establishing a retirement plan committee charter. b. Using a template investment policy statement for investment oversight. c. Creating a list of committee responsibilities. d. Holding regularly scheduled meetings. All of the following statements are best practices for fiduciary training, EXCEPT: a. Developing a Fiduciary checklist for Retirement Plan committee members. b. Documenting the fiduciary training. c. Scheduling fiduciary training sessions to coincide with investment line-up changes. d. Scheduling a meeting that is solely devoted to fiduciary training. c. Scheduling fiduciary training sessions to coincide with investment line-up changes. Tom is a participant in the XYZ 401(k) plan and wants to roll over his account balance from his previous company's plan into the XYZ Plan. He asks the human resource assistant for help. Which statement identifies the action that the assistant should take? a. Contact the TPA or service provider to get information regarding the rollover procedures for the XYZ Plan. b. Tell the employee his accountant must provide a tax analysis to HR before the rollover can take place. c. Tell the employee the rollover will take place after the Plan's Investment Committee approves the rollover. d. Tell the employee he may want to postpone the rollover due to economic conditions. a. Contact the TPA or service provider to get information regarding the rollover procedures for the XYZ Plan. Jack is an employee with Company LMN. He calls Jill, the human resource manager, to ask how he can update his 401(k) beneficiary information. What should Jill do? a. Contact the recordkeeper or TPA to find out the process for updating beneficiary information. b. Have Jack send an email with his new beneficiaries' names to HR. c. Inform Jack that beneficiary information may only be updated once per year. d. Inform Jack that he cannot change the beneficiary since his spouse is the default beneficiary. a. Contact the recordkeeper or TPA to find out the process for updating beneficiary information. All of the following statements regarding the Retirement Plan committee's role in the fiduciary due diligence process are TRUE, EXCEPT: a. Certify to the DOL that fiduciaries have received fiduciary training. b. Document that a prudent investment review process is in place. c. Provide a structured way to review plan's goals and set priorities. d. Assist in monitoring the investment options in accordance with the plan's investment policy statement. a. Certify to the DOL that fiduciaries have received fiduciary training. All of the following documents may demonstrate a prudent process when changing service providers, EXCEPT: a. Participant rollover form b. Documentation of the decision to replace the current provider c. Documentation of participant complaints regarding the current provider d. Request for proposal created for the provider search a. Participant rollover form All of the following are the plan advisor's role when working with a Retirement Plan committee, EXCEPT: a. Explaining the purpose and goals for the meetings. b. Explaining to the Committee the importance of creating a committee charter. c. Educating the Committee on what to include in the meeting minutes. d. Selecting a service provider. d. Selecting a service provider. All of the following actions may help to prevent common plan errors, EXCEPT: a. Manually inputting the weekly 401(k) deferral amounts. b. Reviewing the fiduciary file. c. Developing checklists for various plan procedures. d. Working with service providers to verify the plan document matches plan operation. a. Manually inputting the weekly 401(k) deferral amounts. The MNO Company is converting its 401(k) plan to a new provider. Joe, the plan advisor, has explained to the plan fiduciaries the need to retain documents as part of good fiduciary governance. Which document does NOT need to be retained in MNO's fiduciary file? a. New provider's fee schedule b. New service provider agreements c. Blackout notice d. New enrollment kit d. New enrollment kit All of these are documents can be used to demonstrate a prudent process when changing service providers, EXCEPT: a. RFP b. Committee meeting minutes c. Fee benchmarking report d. Blackout notice e. Documentation from HR showing service provider problems d. Blackout notice (blackout is required, but not technically a part of the prudent process) Select the person responsible for the task below during a conversion process. - Coordinate service providers a. Recordkeeper/TPA b. Advisor c. Plan fiduciary b. Advisor Select the person responsible for the task below during a conversion process. - Retain conversion due diligence documents a. Plan fiduciary b. Recordkeeper/TPA c. Advisor a. Plan fiduciary Select the person responsible for the task below during a conversion process. - Provide documentation of conversion process a. Advisor b. Recordkeeper c. Plan fiduciary b. Recordkeeper What are the most important actions to prevent common plan errors? (Select 3) I. Setting up a good governance process II. Reviewing the plan document and amendments at least annually III. Assuring that principal employees' contributions are maximized each year IV. Working with service providers to verify timing of deferral deposits V. Offering a self-directed brokerage account a. I,II,V b. I,II,IV c. II,III,IV d. II,IV,V b. I,II,IV How often are the fee disclosure notices distributed to participants? (Select 2) I. Full notice, annually II. Participant account fees, quarterly III. Full notice, monthly IV. Never, fee disclosure notices are available online to the participants a. I, II b. I, IV c. II, III d. III, IV a. I, II What documents may be required to be distributed to participants at least once a year? (Select 4) I. Participant benefit statements II. 401(k) safe harbor notices (if applicable) III. Participant fee disclosure IV. Summary annual report V. Form 5500 VI. Plan audit VII. Retirement plan committee meeting minutes a. I,II,III,VII b. III,IV,V,VII c. I,II,III,IV c. I,II,III,IV All the tasks below are responsibilities of an advisor related to retirement plan committee meetings EXCEPT (Select 3): I. Recommend that committee members receive fiduciary training II. Assist the committee with their roles and responsibilities III. Educate the committee on the importance of documentation IV. Communicate plan changes as a result of committee meetings to the plan's service providers V. Select the committee members VI. Vote on committee decisions VII. Oversee the service providers a. I, III, IV b. II, V, VI c. IV, V, VI d. V, VI, VII d. V, VI, VII The attributes of strong retirement plan committees are: (Select 3) I. Have a retirement plan committee charter II. Have only permanent committee members III. Create a committee agenda for every meeting IV. Delegate revenue sharing oversight to the recordkeeper V. Have a list of committee responsibilities VI. Hold monthly meetings. a. I, II, III b. I, III, IV c. I, III, V d. III, V, VI c. I, III, V Retirement plan committee meetings are important for fiduciary due diligence because: a. Committee meetings help facilitate a prudent process b. Committee meetings are evidence that fiduciaries have received fiduciary training required by the DOL c. Committee meetings are required by ERISA for fiduciaries of qualified retirement plans a. Committee meetings help facilitate a prudent process Which of the following are best practices for fiduciary training? (Select 3) I. Have a separate fiduciary meeting devoted to fiduciary training. II. Have a process to train new retirement plan committee members. III. Require committee members to have one or more fiduciary credentials. IV. Document fiduciary training V. Have fiduciary training sessions every two years a. I, II, III b. I, II, IV c. II, III, IV d. III, IV, V b. I, II, IV Which documents) can show that a best practice of training fiduciaries has been followed? (Select 2) I. Committee meeting minutes II. IPS III. Plan document IV. Fiduciary file a. I, III b. I, IV c. II, IV d. III, IV b. I, IV Select the person responsible for the task below during a conversion process. - Coordinate timeline of conversion a. Recordkeeper/TPA b. Plan fiduciary c. Advisor c. Advisor Select the person responsible for the task below during a conversion process. - Provide conversion timeline a. Plan fiduciary b. Advisor c. Recordkeeper/TPA c. Recordkeeper/TPA Select the person responsible for the task below during a conversion process. - Provide disclosure notices a. Advisor b. Plan fiduciary c. Recordkeeper/TPA c. Recordkeeper/TPA Select the person responsible for the task below during a conversion process. - Distribute disclosure notices a. Plan fiduciary b. Recordkeeper/TPA c. Advisor a. Plan fiduciary Select the person responsible for the task below during a conversion process. - Document decision to change providers a. Plan fiduciary b. Recordkeeper/ТРА c. Advisor a. Plan fiduciary