RPA 1 TRAINING STUDY SHEET 2026
UPDATED QUESTIONS AND ANSWERS
◉Under the Employee Retirement Income Security Act of 1974
(ERISA), a fiduciary shall discharge his (or her) duties with respect
to an employee benefit plan solely in the interest of:. Answer: The
plan's participants and beneficiaries
◉Under the Pension Protection Act of 2006, a benefit statement
must be provided to a plan participant of a defined contribution plan
entitled to direct plan investments. Answer: Once a quarter
◉Under which of the following situations are premature
distributions from individual retirement accounts (IRAs) exempt
from the early distribution penalty tax?. Answer: Distributions
because of an Internal Revenue Service levy on the account to pay
◉Which Internal Revenue Code Section generally mandates that,
except for certain exceptions that meet specific requirements,
income from deferred compensation arrangements may no longer
be deferred beyond the year in which such compensation is earned?.
Answer: Section 409A
,◉Which of the following are types of eligible Section 457 plans that
must be unfunded?. Answer: Plans maintained by nongovernmental
tax-exempt organizations
◉Which of the following plans is used in conjunction with debt
financing?. Answer: An employee stock ownership plan
◉Which of the following statements describes the tax treatment of
nonqualified stock options for the employer. Answer: The employer
gets a corporate income tax deduction for the amount of
compensation income the employee realizes at the exercise of the
option
◉An employer can take which of the following actions regarding a
retirement plan covering organized workers without the approval of
the authorized bargaining agent for those employees?
-Install a retirement plan
-Terminate a retirement plan
-Alter the terms of a retirement plan. Answer: None
◉Generally most profit sharing plans do not have difficulties passing
the nondiscrimination-in-contributions requirements for which of
the following reasons?
, Profit sharing plans must have a definite predetermined
contribution formula.
Vesting schedules favor lower paid employees.
The definition for breaks-in-service is more stringent than the one
used for pension plans.. Answer: None
◉In order for a computer model to be used to provide personally
tailored investment advice to 401(k) plan participants, which of the
following conditions must be met?
-The model must be certified by an independent investment expert.
-The model must meet specified audit requirements.
-The model must be provided free of charge or at a de minimus fee to
plan participants.. Answer: 1 & 2
◉In special cases, an amount above the annual 402(g) limit may be
contributed by employees (even those under age 50) to a 403(b)
plan under a salary reduction agreement. Which of the following
statements regarding these special cases is (are) correct?
- In these cases the employee must have a minimum of 15 years of
service with the organization.
- In no event may the employee contribute more than an additional
$3,000 above the 402(g) limit in a single year.
- An eligible employee can contribute a maximum of $5,000 in
additional aggregate contributions.. Answer: 1 & 2
UPDATED QUESTIONS AND ANSWERS
◉Under the Employee Retirement Income Security Act of 1974
(ERISA), a fiduciary shall discharge his (or her) duties with respect
to an employee benefit plan solely in the interest of:. Answer: The
plan's participants and beneficiaries
◉Under the Pension Protection Act of 2006, a benefit statement
must be provided to a plan participant of a defined contribution plan
entitled to direct plan investments. Answer: Once a quarter
◉Under which of the following situations are premature
distributions from individual retirement accounts (IRAs) exempt
from the early distribution penalty tax?. Answer: Distributions
because of an Internal Revenue Service levy on the account to pay
◉Which Internal Revenue Code Section generally mandates that,
except for certain exceptions that meet specific requirements,
income from deferred compensation arrangements may no longer
be deferred beyond the year in which such compensation is earned?.
Answer: Section 409A
,◉Which of the following are types of eligible Section 457 plans that
must be unfunded?. Answer: Plans maintained by nongovernmental
tax-exempt organizations
◉Which of the following plans is used in conjunction with debt
financing?. Answer: An employee stock ownership plan
◉Which of the following statements describes the tax treatment of
nonqualified stock options for the employer. Answer: The employer
gets a corporate income tax deduction for the amount of
compensation income the employee realizes at the exercise of the
option
◉An employer can take which of the following actions regarding a
retirement plan covering organized workers without the approval of
the authorized bargaining agent for those employees?
-Install a retirement plan
-Terminate a retirement plan
-Alter the terms of a retirement plan. Answer: None
◉Generally most profit sharing plans do not have difficulties passing
the nondiscrimination-in-contributions requirements for which of
the following reasons?
, Profit sharing plans must have a definite predetermined
contribution formula.
Vesting schedules favor lower paid employees.
The definition for breaks-in-service is more stringent than the one
used for pension plans.. Answer: None
◉In order for a computer model to be used to provide personally
tailored investment advice to 401(k) plan participants, which of the
following conditions must be met?
-The model must be certified by an independent investment expert.
-The model must meet specified audit requirements.
-The model must be provided free of charge or at a de minimus fee to
plan participants.. Answer: 1 & 2
◉In special cases, an amount above the annual 402(g) limit may be
contributed by employees (even those under age 50) to a 403(b)
plan under a salary reduction agreement. Which of the following
statements regarding these special cases is (are) correct?
- In these cases the employee must have a minimum of 15 years of
service with the organization.
- In no event may the employee contribute more than an additional
$3,000 above the 402(g) limit in a single year.
- An eligible employee can contribute a maximum of $5,000 in
additional aggregate contributions.. Answer: 1 & 2
