ASSPA QKA-2 EXAM |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which employees would be in the otherwise excludable category when determining the
ADP test for 2022 when using disaggregation, based on the following information?
* The plan is a calendar year plan
* The plan's eligibility requirements are attainment of Age 18 and completion of 6 months of
service
* The entry date is the first day of the plan year or the first day of the 7th month of the plan
year following satisfaction of the eligibility requirements.
1. PPT A | Age 19 | DOH 4/30/2020 | Plan Entry 01/01/2021
2. PPT B | Age 22 | DOH 09/19/2021 | Plan Entry 07/01/2022
3. PPT C | Age 32 | DOH 8/15/2019 | Plan Entry 07/01/2020
4. PPT D | Age 35 | DOH 8/21/2021 | Plan Entry 07/01/2022
Anwers:
a. Employee A Only
b. Employees A & B Only
c. Employees A, B, & D Only
d. Employees A & D Only
CORRECT ANSWER
c. Employees A, B and D only
1. Employee A would be in the otherwise excludable group due to being less than age 21
1
, 2. Employee B would be in the otherwise excludable group when applying the statutory
year of service
3. Employee C is in the plan and would not be part of the excludable group even if a
longer eligibility period was used.
4. Employee D would be in the otherwise excludable group because of not entering the
plan until 1/1/2023 if a year of service eligibility period was used.
Question 2
Which of the following types of employee contributions are included in the ADP test?
a. Roth contributions and pre-tax elective deferrals
b. Roth contributions, pre-tax and rollovers
c. Rollovers, QMACs, pre-tax and Roth contributions
d. Roth contributions, pre-tax and after-tax contributions
CORRECT ANSWER
a. Roth contributions and pre-tax elective deferrals
Contributions included in the ADP test include pre-tax elective deferrals and Roth
contributions. QNECs, QMACs and matching contributions may also be included under
certain testing methods.
Question 3
Which of the following employees would be excluded from the ADP test?
a. An employee who is eligible to defer but chooses not to do so
b. An employee who defers during the year but works less than 501 hours during such year
c. An employee who is in an employee class ineligible to participate in the plan
2
,d. An employee who defers during the year but terminates prior to the last day of the plan
year
CORRECT ANSWER
c. An employee who is in an employee class ineligible to participate in the plan.
Employees who are eligible to defer, whether they choose to or not are included in the
ADP test. Those who are not eligible to defer at all during the year are excluded.
Question 4
Which of the following statements regarding prior year and current year testing methods
is TRUE?
a. When using prior year testing, an employee that was an NHCE in the prior year and an
HCE in the current year is disregarded for both testing years.
b. A plan that uses the current year testing method may switch to the prior testing method
in any subsequent year.
c. A plan that uses the prior year testing method may switch to the current year testing
method in any subsequent year.
d. A plan may not use the current year testing method for the ADP test when using the prior
year testing method for the ACP test.
CORRECT ANSWER
c. A plan that uses the prior year testing method may switch to the current year testing
method in any subsequent year.
A plan is not required to use the same method for both the ADP and ACP test. A plan that
uses the prior year testing method may switch to current year for any subsequent year.
When using the current year method, switching to the prior year method may only be
done if the current year was used for 5 consecutive plan years or the life of the plan if
less than 5 years.
3
, Question 5
When using the early participation testing method for the ADP test, which of the following
statements is TRUE?
a. Two ADP tests are performed; one for all NHCEs and one for the statutory HCEs.
b. When determining the statutory employees under the early participant test, the statutory
age is 18.
c. When determining the statutory employees under the early participant testing method,
an eligibility provision of 6 months must be used.
d. Only one ADP test is performed.
CORRECT ANSWER
d. Only one ADP test is performed.
When using the early participation testing method, a test including all the HCEs and only
the NHCEs who have met the statutory requirements is run. Those NHCEs who have not
met the statutory requirements are not tested.
Question 6
What is one of the advantages of using the prior year testing method over the current year
testing method for ADP purposes?
a. If the NHCE percentage is not large enough, the employer will be able to encourage more
NHCE deferrals.
b. It will be known if the HCEs need to have their matching contributions limited.
c. HCEs will be able to defer the IRC 402g maximum without failing the ADP test.
d. The maximum ADP for the HCEs for testing year is predictable.
CORRECT ANSWER
d. The maximum ADP for the HCEs for testing year is predictable.
4
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which employees would be in the otherwise excludable category when determining the
ADP test for 2022 when using disaggregation, based on the following information?
* The plan is a calendar year plan
* The plan's eligibility requirements are attainment of Age 18 and completion of 6 months of
service
* The entry date is the first day of the plan year or the first day of the 7th month of the plan
year following satisfaction of the eligibility requirements.
1. PPT A | Age 19 | DOH 4/30/2020 | Plan Entry 01/01/2021
2. PPT B | Age 22 | DOH 09/19/2021 | Plan Entry 07/01/2022
3. PPT C | Age 32 | DOH 8/15/2019 | Plan Entry 07/01/2020
4. PPT D | Age 35 | DOH 8/21/2021 | Plan Entry 07/01/2022
Anwers:
a. Employee A Only
b. Employees A & B Only
c. Employees A, B, & D Only
d. Employees A & D Only
CORRECT ANSWER
c. Employees A, B and D only
1. Employee A would be in the otherwise excludable group due to being less than age 21
1
, 2. Employee B would be in the otherwise excludable group when applying the statutory
year of service
3. Employee C is in the plan and would not be part of the excludable group even if a
longer eligibility period was used.
4. Employee D would be in the otherwise excludable group because of not entering the
plan until 1/1/2023 if a year of service eligibility period was used.
Question 2
Which of the following types of employee contributions are included in the ADP test?
a. Roth contributions and pre-tax elective deferrals
b. Roth contributions, pre-tax and rollovers
c. Rollovers, QMACs, pre-tax and Roth contributions
d. Roth contributions, pre-tax and after-tax contributions
CORRECT ANSWER
a. Roth contributions and pre-tax elective deferrals
Contributions included in the ADP test include pre-tax elective deferrals and Roth
contributions. QNECs, QMACs and matching contributions may also be included under
certain testing methods.
Question 3
Which of the following employees would be excluded from the ADP test?
a. An employee who is eligible to defer but chooses not to do so
b. An employee who defers during the year but works less than 501 hours during such year
c. An employee who is in an employee class ineligible to participate in the plan
2
,d. An employee who defers during the year but terminates prior to the last day of the plan
year
CORRECT ANSWER
c. An employee who is in an employee class ineligible to participate in the plan.
Employees who are eligible to defer, whether they choose to or not are included in the
ADP test. Those who are not eligible to defer at all during the year are excluded.
Question 4
Which of the following statements regarding prior year and current year testing methods
is TRUE?
a. When using prior year testing, an employee that was an NHCE in the prior year and an
HCE in the current year is disregarded for both testing years.
b. A plan that uses the current year testing method may switch to the prior testing method
in any subsequent year.
c. A plan that uses the prior year testing method may switch to the current year testing
method in any subsequent year.
d. A plan may not use the current year testing method for the ADP test when using the prior
year testing method for the ACP test.
CORRECT ANSWER
c. A plan that uses the prior year testing method may switch to the current year testing
method in any subsequent year.
A plan is not required to use the same method for both the ADP and ACP test. A plan that
uses the prior year testing method may switch to current year for any subsequent year.
When using the current year method, switching to the prior year method may only be
done if the current year was used for 5 consecutive plan years or the life of the plan if
less than 5 years.
3
, Question 5
When using the early participation testing method for the ADP test, which of the following
statements is TRUE?
a. Two ADP tests are performed; one for all NHCEs and one for the statutory HCEs.
b. When determining the statutory employees under the early participant test, the statutory
age is 18.
c. When determining the statutory employees under the early participant testing method,
an eligibility provision of 6 months must be used.
d. Only one ADP test is performed.
CORRECT ANSWER
d. Only one ADP test is performed.
When using the early participation testing method, a test including all the HCEs and only
the NHCEs who have met the statutory requirements is run. Those NHCEs who have not
met the statutory requirements are not tested.
Question 6
What is one of the advantages of using the prior year testing method over the current year
testing method for ADP purposes?
a. If the NHCE percentage is not large enough, the employer will be able to encourage more
NHCE deferrals.
b. It will be known if the HCEs need to have their matching contributions limited.
c. HCEs will be able to defer the IRC 402g maximum without failing the ADP test.
d. The maximum ADP for the HCEs for testing year is predictable.
CORRECT ANSWER
d. The maximum ADP for the HCEs for testing year is predictable.
4
