CEBS RPA 1 ACTUAL EXAM TEST 2025/26: 110+ MOST
TESTED QUESTIONS AND ANSWERS | GRADED A+ |
GUARANTEED PASS!!
A defined benefit plan that bases benefits on compensation earned throughout the
employee's time of employment with a company is which kind of plan?
A) A career average pay plan
B) A final pay plan
C) A salary deferral plan
D) A traditional pension plan
- answer-A) A career average pay plan
(Module 3 pg. 9 and Text pg. 75)
A distribution from a Roth IRA is a qualified distribution if it meets any of the
following requirements, EXCEPT:
A) The taxpayer has died and payment is made to a beneficiary or to the
individual's estate
B) The taxpayer has attained the age of 59 1/2
C) The taxpayer is disabled
D) The distribution is made to pay first-time home buyer expenses and does not
exceed $10,000
E) The taxpayer declares bankruptcy
- answer-EXCEPT if E) The taxpayer declares bankruptcy
(Study Guide, Module 10 pg. 9 and Text pg. 259)
A plan is (BLANK) if the sum of the account balances of all key employees
participating in the plan is more than 60% of the account balances of all covered
employees.
A. Top-heavy
B. Non-key
C. Discriminatory
D. Vested
- answer-A. Top-heavy
,A qualified stock bonus plan or a combination qualified stock bonus plan and a
defined contribution plan designed to invest primarily in employer securities is
a(n):
A) Incentive Stock Option (ISO)
B) Stock Grant Plan
C) Non-qualified Stock Option
D) Employee Stock Ownership Plan (ESOP)
- answer-D: Employee Stock Ownership Plan (ESOP)
(Module 8 pg. 21 and Text pg. 222)
A retirement plan that provides benefits that cannot be provided through qualified
plans solely because of IRC Section 415 limits on benefits and contributions is
a(n):
A) Top hat plan
B) Cash balance plan
C) Lifecycle pension plan
D) Integrated plan
E) Excess benefit plan
- answer-E) Excess benefit plan
(Module 3 pg. 19 and Text pg. 278)
A SIMPLE plan has which of the following characteristics?
A) All contributions to the plan come from the employer
B) The allocation of the contribution is determined for all participants based solely
on years of service
C) These plans may be created by employers with 100 or fewer employees who
received at least $5,000 in compensation in the prior year.
D) All employees are included in the plan
E) The allocation formula provides for additional contributions on the
compensation in excess of the Social Security Wage Base
- answer-C) These plans may be created by employers with 100 or fewer
employees who received at least $5,000 in compensation in the prior year.
(Module 9 pg. 9-10 and Text pg. 242-243)
, A Simplified Employee Pension (SEP) plan must have all of the following
characteristics, EXCEPT:
A) SEPs cannot permit employee loans
B) It must be in writing and must specify participation requirements for employee
participation
C) Employer contributions may not discriminate in favor of highly compensated
employees
D) The employer must require that an employee leave some or all of the
contributions in the SEP as a condition for receiving future employer contribution
E) Employer contributions may be discretionary from year to year
- answer-Except D) the employer must require that an employee leave some or all
of the contributions in the SEP as a condition for receiving future employer
contribution
(Study Guide, Module 9 pg. 6-7 and Text pg. 238-239)
All of the following are advantages to the employer in sponsoring 401(k) plans,
EXCEPT:
A) Contributions accumulate under a tax shelter
B) It can focus company contributions on the top employees
C) It increases the level of employee contribution towards retirement
D) It improves attraction and retention of employees
E) It improves employees morale
- answer-B. It can focus company contributions on the top employees (it should not
do this)
(Module 6 pg. 4-5 and Text pg. 139-40)
All of the following are basic characteristics of non-qualified stock options
(NQSOs), EXCEPT:
A) NQSOs are taxed based on tax principles found in IRC Section 83
B) NQSOs can have terms decided upon by the employee and employer
C) NQSOs are stock options that do meet the requirement for Incentive Stock
Options (ISOs)
D) NQSOs are not limited in the amount of stock subject to such options
- answer-EXCEPT: A) NQSOs are taxed based on tax principles found in IRC
Section 83
TESTED QUESTIONS AND ANSWERS | GRADED A+ |
GUARANTEED PASS!!
A defined benefit plan that bases benefits on compensation earned throughout the
employee's time of employment with a company is which kind of plan?
A) A career average pay plan
B) A final pay plan
C) A salary deferral plan
D) A traditional pension plan
- answer-A) A career average pay plan
(Module 3 pg. 9 and Text pg. 75)
A distribution from a Roth IRA is a qualified distribution if it meets any of the
following requirements, EXCEPT:
A) The taxpayer has died and payment is made to a beneficiary or to the
individual's estate
B) The taxpayer has attained the age of 59 1/2
C) The taxpayer is disabled
D) The distribution is made to pay first-time home buyer expenses and does not
exceed $10,000
E) The taxpayer declares bankruptcy
- answer-EXCEPT if E) The taxpayer declares bankruptcy
(Study Guide, Module 10 pg. 9 and Text pg. 259)
A plan is (BLANK) if the sum of the account balances of all key employees
participating in the plan is more than 60% of the account balances of all covered
employees.
A. Top-heavy
B. Non-key
C. Discriminatory
D. Vested
- answer-A. Top-heavy
,A qualified stock bonus plan or a combination qualified stock bonus plan and a
defined contribution plan designed to invest primarily in employer securities is
a(n):
A) Incentive Stock Option (ISO)
B) Stock Grant Plan
C) Non-qualified Stock Option
D) Employee Stock Ownership Plan (ESOP)
- answer-D: Employee Stock Ownership Plan (ESOP)
(Module 8 pg. 21 and Text pg. 222)
A retirement plan that provides benefits that cannot be provided through qualified
plans solely because of IRC Section 415 limits on benefits and contributions is
a(n):
A) Top hat plan
B) Cash balance plan
C) Lifecycle pension plan
D) Integrated plan
E) Excess benefit plan
- answer-E) Excess benefit plan
(Module 3 pg. 19 and Text pg. 278)
A SIMPLE plan has which of the following characteristics?
A) All contributions to the plan come from the employer
B) The allocation of the contribution is determined for all participants based solely
on years of service
C) These plans may be created by employers with 100 or fewer employees who
received at least $5,000 in compensation in the prior year.
D) All employees are included in the plan
E) The allocation formula provides for additional contributions on the
compensation in excess of the Social Security Wage Base
- answer-C) These plans may be created by employers with 100 or fewer
employees who received at least $5,000 in compensation in the prior year.
(Module 9 pg. 9-10 and Text pg. 242-243)
, A Simplified Employee Pension (SEP) plan must have all of the following
characteristics, EXCEPT:
A) SEPs cannot permit employee loans
B) It must be in writing and must specify participation requirements for employee
participation
C) Employer contributions may not discriminate in favor of highly compensated
employees
D) The employer must require that an employee leave some or all of the
contributions in the SEP as a condition for receiving future employer contribution
E) Employer contributions may be discretionary from year to year
- answer-Except D) the employer must require that an employee leave some or all
of the contributions in the SEP as a condition for receiving future employer
contribution
(Study Guide, Module 9 pg. 6-7 and Text pg. 238-239)
All of the following are advantages to the employer in sponsoring 401(k) plans,
EXCEPT:
A) Contributions accumulate under a tax shelter
B) It can focus company contributions on the top employees
C) It increases the level of employee contribution towards retirement
D) It improves attraction and retention of employees
E) It improves employees morale
- answer-B. It can focus company contributions on the top employees (it should not
do this)
(Module 6 pg. 4-5 and Text pg. 139-40)
All of the following are basic characteristics of non-qualified stock options
(NQSOs), EXCEPT:
A) NQSOs are taxed based on tax principles found in IRC Section 83
B) NQSOs can have terms decided upon by the employee and employer
C) NQSOs are stock options that do meet the requirement for Incentive Stock
Options (ISOs)
D) NQSOs are not limited in the amount of stock subject to such options
- answer-EXCEPT: A) NQSOs are taxed based on tax principles found in IRC
Section 83
