CPFA EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM TEST
QUESTIONS & CORRECT ANSWERS (A+ GRADED 100%
VERIFIED) 2025 NEWEST !!
Which statement regarding service providers is TRUE? -
ANSWER-A TPA
performs annual compliance
testing
All of the following are important factors when selecting a
service provider,
except? - ANSWER-Willingness to provide revenue sharing to
offset plan fees.
Which statement regarding bundled service arrangements is
TRUE? - ANSWER-Provides efficient contribution and
distribution processes.
Based on behavioral finance research, which of the following is
a best practice for producing successful participant outcomes?
- ANSWER-Combining autoenrollment with targeted education
Company ABC and Company DEF are determined to be part of
a related group
,of companies. Which is not true? - ANSWER-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? - ANSWER-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? - ANSWER-Can
participants convert their existing contribution accounts to
Roth accounts
All of the following describe the impact of a business' cash flow
and budget when establishing a plan, except? - ANSWER-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? - ANSWER-average deferral rate of
participants in the
plan
All of the following are benefits of participant retirement
readiness, except? -
ANSWER-participants receive a guarantee of lifetime
income payments
All of the following are best practices for determining the
reasonableness of
plan fees, except? - ANSWER-Owner driven plans are
not required to
determine the reasonableness of plan fee due to their limited
personnel and
financial
resources.
All of the following fees may be paid from the plan, except? -
ANSWER-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? - ANSWER-XYZ, inc. who is seeking to
acquire STU, inc.
ERISA defines the following as plan fiduciaries, except? -
ANSWER-Plan
accountant
All of the following describe non-fiduciary individuals
performing ministerial functions, except? - ANSWER-A human
resources director decides to fully vest a terminated employee
because of his excellent work history.
Plans and objectives: - ANSWER-1. What are the primary
concerns (tax benefits to the business and the owners,
attracting and retaining employee rank and file participant
retirement outcome?)
2. Which group(s) of employees is the plan sponsor looking
to benefit (rank and file employees, mid-management, higher
management, owners?)
3. Is there one or more groups of employees who may not
need the plan or unlikely to participate in the plan?
QUESTIONS & CORRECT ANSWERS (A+ GRADED 100%
VERIFIED) 2025 NEWEST !!
Which statement regarding service providers is TRUE? -
ANSWER-A TPA
performs annual compliance
testing
All of the following are important factors when selecting a
service provider,
except? - ANSWER-Willingness to provide revenue sharing to
offset plan fees.
Which statement regarding bundled service arrangements is
TRUE? - ANSWER-Provides efficient contribution and
distribution processes.
Based on behavioral finance research, which of the following is
a best practice for producing successful participant outcomes?
- ANSWER-Combining autoenrollment with targeted education
Company ABC and Company DEF are determined to be part of
a related group
,of companies. Which is not true? - ANSWER-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? - ANSWER-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? - ANSWER-Can
participants convert their existing contribution accounts to
Roth accounts
All of the following describe the impact of a business' cash flow
and budget when establishing a plan, except? - ANSWER-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? - ANSWER-average deferral rate of
participants in the
plan
All of the following are benefits of participant retirement
readiness, except? -
ANSWER-participants receive a guarantee of lifetime
income payments
All of the following are best practices for determining the
reasonableness of
plan fees, except? - ANSWER-Owner driven plans are
not required to
determine the reasonableness of plan fee due to their limited
personnel and
financial
resources.
All of the following fees may be paid from the plan, except? -
ANSWER-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? - ANSWER-XYZ, inc. who is seeking to
acquire STU, inc.
ERISA defines the following as plan fiduciaries, except? -
ANSWER-Plan
accountant
All of the following describe non-fiduciary individuals
performing ministerial functions, except? - ANSWER-A human
resources director decides to fully vest a terminated employee
because of his excellent work history.
Plans and objectives: - ANSWER-1. What are the primary
concerns (tax benefits to the business and the owners,
attracting and retaining employee rank and file participant
retirement outcome?)
2. Which group(s) of employees is the plan sponsor looking
to benefit (rank and file employees, mid-management, higher
management, owners?)
3. Is there one or more groups of employees who may not
need the plan or unlikely to participate in the plan?
