CPFA COMPLETE STUDY GUIDE 2026
QUESTIONS WITH SOLUTIONS GRADED A+
⩥ which statement regarding bundled service arrangements is TRUE?
Answer: 1. Provides efficient contribution and distribution processes. 2.
requires less fiduciary oversight than an unbundled service arrangement.
3. permits for a specific single provider within the arrangement to be
easily removed and replaced with another provider. 4. typical
arrangement involves a TPA and an insurance company?
1.
⩥ company abc and company def are determined to be part of a related
group of companies. all of the following statements are TRUE,
EXCEPT: Answer: 1. the employees of both abc and def may end up
participating in one plan. 2. abc may be required to make contributions
for its employees in def's plan. def has the right to "opt out" and be
excluded from the related group. 4. if def adopts a plan, abc employees
may be eligible for the plan.
3.
⩥ which of the following plan deigns may result in better participant
deferral behavior? 1. adding an employer matching contribution equal to
25% up to 12% of compensation deferred. 2. adding a 3% nonelective
, safe harbor contribution. 3. adding a profit sharing contribution Answer:
1.
⩥ an advisor is meeting with a plan sponsor to discuss contribution in
her plan. all of the following questions will help with this conversation,
EXCEPT Answer: 1. is there a goal that employees should be required to
contribute to receive an employer contribution? 2. Can participants
convert their existing contribution accounts to roth accounts? 3. Is there
a group of employees who are unlikely to participate in the plan? How
important is it that employees are on track for adequate retirement
income?
2.
⩥ all of the following service providers may assist with plan document
maintenance, except Answer: 1. ERISA attorney. 2. Recordkeeper. 3.
TPA firm. 4. Plan auditor
4.
⩥ which statement regarding to and through target date funds are true?
Answer: 1. if a majority of participants cash out of a plan upon
retirement, a through strategy may be appropriate. 2. a to target date
fund may be a good choice if many retirees have account balances in the
plan. 3. a key difference between to and through target date funds are
QUESTIONS WITH SOLUTIONS GRADED A+
⩥ which statement regarding bundled service arrangements is TRUE?
Answer: 1. Provides efficient contribution and distribution processes. 2.
requires less fiduciary oversight than an unbundled service arrangement.
3. permits for a specific single provider within the arrangement to be
easily removed and replaced with another provider. 4. typical
arrangement involves a TPA and an insurance company?
1.
⩥ company abc and company def are determined to be part of a related
group of companies. all of the following statements are TRUE,
EXCEPT: Answer: 1. the employees of both abc and def may end up
participating in one plan. 2. abc may be required to make contributions
for its employees in def's plan. def has the right to "opt out" and be
excluded from the related group. 4. if def adopts a plan, abc employees
may be eligible for the plan.
3.
⩥ which of the following plan deigns may result in better participant
deferral behavior? 1. adding an employer matching contribution equal to
25% up to 12% of compensation deferred. 2. adding a 3% nonelective
, safe harbor contribution. 3. adding a profit sharing contribution Answer:
1.
⩥ an advisor is meeting with a plan sponsor to discuss contribution in
her plan. all of the following questions will help with this conversation,
EXCEPT Answer: 1. is there a goal that employees should be required to
contribute to receive an employer contribution? 2. Can participants
convert their existing contribution accounts to roth accounts? 3. Is there
a group of employees who are unlikely to participate in the plan? How
important is it that employees are on track for adequate retirement
income?
2.
⩥ all of the following service providers may assist with plan document
maintenance, except Answer: 1. ERISA attorney. 2. Recordkeeper. 3.
TPA firm. 4. Plan auditor
4.
⩥ which statement regarding to and through target date funds are true?
Answer: 1. if a majority of participants cash out of a plan upon
retirement, a through strategy may be appropriate. 2. a to target date
fund may be a good choice if many retirees have account balances in the
plan. 3. a key difference between to and through target date funds are
