QKA-1 Exam (2025) UPDATE Verified Questions
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Terms in this set (175)
-Satisfy ADP test
A plan cannot satisfy ACP -match can only be made on deferrals up to first 6%
Safe Harbor test without of comp
meeting these -rate of match cannot increase as rate of deferrals
requirements: increases
-after-tax contributions always subject to ACP test
a design based safe harbor allocation.
Cross-tested allocation Nondiscrimination must be performed every year
method is NOT ________ When salaries are the same, older participants may
receive a larger allocation
TRUE or FALSE: A plan TRUE
may satisfy ADP safe
harbor test and not satisfy
ACP safe harbor test
What matching formula traditional ADP safe harbor matching must be at least
satisfies traditional ADP 100% of the first 3%, plus 50% of deferrals on 2%
safe harbor deferred
what characteristics does -only contribution source is elective deferral
a 403(b) need to be -participation is voluntary
exempt from ERISA -employer involvement is limited
, -subject to minimum funding requirement
Characteristics of a -may not make hardship distributions
pension plan -payments may be paid as an annuity
-ESOPS must be funded with stock of employer
-paying plan expenses
Options for a profit -reducing employer contributions
sharing plan for the -using it for additional contributions
reallocation of forfeitures may be utilized annually, but not accumulated year by
year
yes: it can be paid regardless of spouse's consent.
Can a QJSA be paid if the
consent is required when payments besides annuity
spouse does not consent?
are requested.
TRUE or FALSE: In a TRUE
defined contribution plan,
a participants benefit is
based solely on the value
of the account balance
It is uncommon for a small Top heavy and non discrimination
company to have a
deferral only 401(k) plan
because of two rules:
What is an employer Nonelective contributions
contribution made to all
employees regardless of
and not tied to employee
deferrals?
TRUE or FALSE: money True
purchase plans adopted in
2025 do not permit
employee elective
deferrals
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Terms in this set (175)
-Satisfy ADP test
A plan cannot satisfy ACP -match can only be made on deferrals up to first 6%
Safe Harbor test without of comp
meeting these -rate of match cannot increase as rate of deferrals
requirements: increases
-after-tax contributions always subject to ACP test
a design based safe harbor allocation.
Cross-tested allocation Nondiscrimination must be performed every year
method is NOT ________ When salaries are the same, older participants may
receive a larger allocation
TRUE or FALSE: A plan TRUE
may satisfy ADP safe
harbor test and not satisfy
ACP safe harbor test
What matching formula traditional ADP safe harbor matching must be at least
satisfies traditional ADP 100% of the first 3%, plus 50% of deferrals on 2%
safe harbor deferred
what characteristics does -only contribution source is elective deferral
a 403(b) need to be -participation is voluntary
exempt from ERISA -employer involvement is limited
, -subject to minimum funding requirement
Characteristics of a -may not make hardship distributions
pension plan -payments may be paid as an annuity
-ESOPS must be funded with stock of employer
-paying plan expenses
Options for a profit -reducing employer contributions
sharing plan for the -using it for additional contributions
reallocation of forfeitures may be utilized annually, but not accumulated year by
year
yes: it can be paid regardless of spouse's consent.
Can a QJSA be paid if the
consent is required when payments besides annuity
spouse does not consent?
are requested.
TRUE or FALSE: In a TRUE
defined contribution plan,
a participants benefit is
based solely on the value
of the account balance
It is uncommon for a small Top heavy and non discrimination
company to have a
deferral only 401(k) plan
because of two rules:
What is an employer Nonelective contributions
contribution made to all
employees regardless of
and not tied to employee
deferrals?
TRUE or FALSE: money True
purchase plans adopted in
2025 do not permit
employee elective
deferrals
