RPA 1 FINAL PAPER 2026 FULL Q&A STUDY
GUIDE GRADED A+
◉PS Formula types. Answer: Age-based
Service-based
Flat amount
Percent of pay
Point system using factors like age, service & pay
◉Profit Sharing Plan. Answer: Co. contributions are made based on
business profits
◉Types of PS Plans. Answer: Cash
Deferred
Cash or Deferred (CODA)
◉Coverage Requirements for PSP. Answer: Non-Discriminatory
Age 21 - Max Age
1 YOS - if vesting schedule
2 YOS - if fully vested
,◉Substantial & Recurring Contributions. Answer: in general, they
must be made 3 out of 5 years
◉Contribution Allocation Formula. Answer: must be stated in plan
doc.
◉Integration of PS plans SS. Answer:
◉Forfeitures under PSP. Answer: Comes when part leaves without
being 100% vested. The unvested portion are allocated to other
parts or used for plan expenses.
◉Loans. Answer: permitted up to 50% of acct balance, max $50k
5 Year repay, unless for house
◉PS distributions. Answer: can be withdrawn 2 yrs after
contribution, or after 5 years in plan
◉404(c). Answer: Statutory relief from liability for EE invest
decisions
◉Deduction limit of ER contribution. Answer: 25% of eligible
payroll
, ◉contribution carryover. Answer: if excess contributions are made,
contribution in future years is reduced by that amount. 10% penalty
◉taxation of distributions fro a PSP. Answer: contib & earnings are
taxed, unless co. stock is distributed. then, only the cost basis of the
stock is taxable
◉term of PSP. Answer: parts become 100% vested; all parts receive
full distribution of account.
◉Tax characteristics common to MPP and DB plans. Answer: both
are subject to min funding and J&S requirements
◉Tax and gen characteristics common to MPP & DC plans. Answer:
both are subject to annual additions within the limit of sec 415.
Neither are subject to the PBGC or Pension term rules
◉In-Service dist in MPP. Answer: No permitted
◉J&S requirements for MPP. Answer: same as is for DB plans
◉before tax contrib to MPP. Answer: this is prohibited
GUIDE GRADED A+
◉PS Formula types. Answer: Age-based
Service-based
Flat amount
Percent of pay
Point system using factors like age, service & pay
◉Profit Sharing Plan. Answer: Co. contributions are made based on
business profits
◉Types of PS Plans. Answer: Cash
Deferred
Cash or Deferred (CODA)
◉Coverage Requirements for PSP. Answer: Non-Discriminatory
Age 21 - Max Age
1 YOS - if vesting schedule
2 YOS - if fully vested
,◉Substantial & Recurring Contributions. Answer: in general, they
must be made 3 out of 5 years
◉Contribution Allocation Formula. Answer: must be stated in plan
doc.
◉Integration of PS plans SS. Answer:
◉Forfeitures under PSP. Answer: Comes when part leaves without
being 100% vested. The unvested portion are allocated to other
parts or used for plan expenses.
◉Loans. Answer: permitted up to 50% of acct balance, max $50k
5 Year repay, unless for house
◉PS distributions. Answer: can be withdrawn 2 yrs after
contribution, or after 5 years in plan
◉404(c). Answer: Statutory relief from liability for EE invest
decisions
◉Deduction limit of ER contribution. Answer: 25% of eligible
payroll
, ◉contribution carryover. Answer: if excess contributions are made,
contribution in future years is reduced by that amount. 10% penalty
◉taxation of distributions fro a PSP. Answer: contib & earnings are
taxed, unless co. stock is distributed. then, only the cost basis of the
stock is taxable
◉term of PSP. Answer: parts become 100% vested; all parts receive
full distribution of account.
◉Tax characteristics common to MPP and DB plans. Answer: both
are subject to min funding and J&S requirements
◉Tax and gen characteristics common to MPP & DC plans. Answer:
both are subject to annual additions within the limit of sec 415.
Neither are subject to the PBGC or Pension term rules
◉In-Service dist in MPP. Answer: No permitted
◉J&S requirements for MPP. Answer: same as is for DB plans
◉before tax contrib to MPP. Answer: this is prohibited
