CRPC TEST EXAM QUESTIONS AND
CORRECT ANSWERS 2025
No other qualified plan or 403(b)
- answer-Simple IRA or Simple 401(k)
Younger employees benefit from years of contributions and compounding
- answer-Profit sharing, SEP, or Tandem Plan
Business has stable cash flow and owner willing to make annual financial
commitment, but either unwilling or unable to commit more than 25%
compensation
- answer-Money Purchase or Target Benefit Plan to provid age-weighted plan
Means to allow owner to meet his/her retirement
- answer-Defined Benefit Plan
No more than 100 employees earing $5000 or more
- answer-Simple IRA or Simple 401(k)
Desire plan that will motivate employees
- answer-Profit sharing, SEP, or Tandem Plan
Seeks maximum tax shelter
- answer-Defined Benefit Plan
Business cash flow fluctuates
- answer-Profit sharing, SEP, or Tandem Plan
Owner willing to make minimal contribution-2% or 3% of compensation
- answer-Simple IRA or Simple 401(k)
Means to allow owner to meet his/her retirement
- answer-Defined Benefit Plan
Desire very low administrative cost
- answer-Simple IRA or Simple 401(k)
CORRECT ANSWERS 2025
No other qualified plan or 403(b)
- answer-Simple IRA or Simple 401(k)
Younger employees benefit from years of contributions and compounding
- answer-Profit sharing, SEP, or Tandem Plan
Business has stable cash flow and owner willing to make annual financial
commitment, but either unwilling or unable to commit more than 25%
compensation
- answer-Money Purchase or Target Benefit Plan to provid age-weighted plan
Means to allow owner to meet his/her retirement
- answer-Defined Benefit Plan
No more than 100 employees earing $5000 or more
- answer-Simple IRA or Simple 401(k)
Desire plan that will motivate employees
- answer-Profit sharing, SEP, or Tandem Plan
Seeks maximum tax shelter
- answer-Defined Benefit Plan
Business cash flow fluctuates
- answer-Profit sharing, SEP, or Tandem Plan
Owner willing to make minimal contribution-2% or 3% of compensation
- answer-Simple IRA or Simple 401(k)
Means to allow owner to meet his/her retirement
- answer-Defined Benefit Plan
Desire very low administrative cost
- answer-Simple IRA or Simple 401(k)
