QKA- 1 EXAMINATION (2025-2026) NEWEST
VERSION WITH WELL-DETAILED QUESTIONS
AND VERIFIED ANSWERS / GET IT 100%
CORRECT ANSWERS / ALREADY GRADED A+
What is a defined benefit plan?
A plan that does not maintain individual account balances, but
instead guarantees a benefit to participants.
Whose responsibility is it to ensure that a defined benefit plan has
enough money to provide all participants their retirement benefits?
The employer
What is an advantage of a defined benefit plan?
The contributions can be large, and significantly more than the
maximum allowed for defined contribution plans
What is a disadvantage of a defined benefit plan?
Contributions to employees are required even if the company has a
bad year.
True or false: a defined benefit plan is legally defined as any plan
other than a defined contribution plan.
True
True or false: a defined benefit plan is not required to provide
definitely determinable benefits
False
True or false: a defined benefit plan maintains individual account
balances to reflect the accrued benefits of the plan participants.
False; Instead, the amount available to provide benefits at retirement
is determined by a formula stated in the plan.
,If the investments within a defined benefit plan lose money or perform
worse than expected, who is responsible for contributing more to
make up the difference?
The employer
True or false: In-service withdrawals are not permitted under a
defined benefit plan.
True
What are the permissible withdrawal options under a defined benefit
plan?
Termination of employment, disability, and retirement.
True or false: a defined benefit plan can be a nonpension plan.
False; all defined benefit plans are pension plans.
True or false: a defined benefit plan is subject to minimum funding
rules.
True
What is a defined benefit plan?
A plan that does not maintain individual account balances, but
instead guarantees a benefit to participants.
Whose responsibility is it to ensure that a defined benefit plan has
enough money to provide all participants their retirement benefits?
The employer
What is an advantage of a defined benefit plan?
The contributions can be large, and significantly more than the
maximum allowed for defined contribution plans
What is a disadvantage of a defined benefit plan?
Contributions to employees are required even if the company has a
bad year.
True or false: a defined benefit plan is legally defined as any plan
other than a defined contribution plan.
True
True or false: a defined benefit plan is not required to provide
definitely determinable benefits
,False
True or false: a defined benefit plan maintains individual account
balances to reflect the accrued benefits of the plan participants.
False; Instead, the amount available to provide benefits at retirement
is determined by a formula stated in the plan.
If the investments within a defined benefit plan lose money or perform
worse than expected, who is responsible for contributing more to
make up the difference?
The employer
True or false: In-service withdrawals are not permitted under a
defined benefit plan.
True
What are the permissible withdrawal options under a defined benefit
plan?
Termination of employment, disability, and retirement.
True or false: a defined benefit plan can be a nonpension plan.
False; all defined benefit plans are pension plans.
True or false: a defined benefit plan is subject to minimum funding
rules.
True
Are profit sharing plans a defined benefit or defined contribution form
of plan?
Defined contribution
Can an elective deferral option be offered as part of a profit sharing
plan?
Yes
Does the employer have to make a contribution each year to satisfy
qualifications for a profit sharing plan?
No
True or False: Profit sharing plans require a definite formula in the
plan document to follow for contributions.
, False except for when they are based on the employers own profits
then the process must be described in the plan document.
Name a benefit for the employer in profit sharing plans.
Flexibility in when and how much they contribute.
Can a profit sharing plan allow in-service distributions?
Yes. Profit sharing plans can allow for in-service distributions, which
includes hardship distributions.
Where are the assets held in a profit sharing plan?
In a trust with investments
Are the allocation of funds in a profit sharing fund up to the
employers discretion?
No, allocation must follow an outlined formula in the plan document.
What are the features of a profit sharing plan?
A profit-sharing plan is a defined contribution plan under which the
employer's contribution each year may be determined at the
employer's discretion.
Must the employer fund a contribution to a profit sharing plan each
year?
No, the employer does not have to fund a contribution each year.
However, they are required to be substantial and recurring.
Can a participant contribute 401(k) deferrals to Money Purchase
plans?
No, only contributions can be Employer Contributions
Are money purchase plans a defined benefit or defined contribution
form of plan?
Defined Contribution
Are money purchase plans a pension plan or nonpension plan?
Pension Plan
In-service distributions are permitted from money purchase plans to a
participant who has reached age 59 ½.
True
VERSION WITH WELL-DETAILED QUESTIONS
AND VERIFIED ANSWERS / GET IT 100%
CORRECT ANSWERS / ALREADY GRADED A+
What is a defined benefit plan?
A plan that does not maintain individual account balances, but
instead guarantees a benefit to participants.
Whose responsibility is it to ensure that a defined benefit plan has
enough money to provide all participants their retirement benefits?
The employer
What is an advantage of a defined benefit plan?
The contributions can be large, and significantly more than the
maximum allowed for defined contribution plans
What is a disadvantage of a defined benefit plan?
Contributions to employees are required even if the company has a
bad year.
True or false: a defined benefit plan is legally defined as any plan
other than a defined contribution plan.
True
True or false: a defined benefit plan is not required to provide
definitely determinable benefits
False
True or false: a defined benefit plan maintains individual account
balances to reflect the accrued benefits of the plan participants.
False; Instead, the amount available to provide benefits at retirement
is determined by a formula stated in the plan.
,If the investments within a defined benefit plan lose money or perform
worse than expected, who is responsible for contributing more to
make up the difference?
The employer
True or false: In-service withdrawals are not permitted under a
defined benefit plan.
True
What are the permissible withdrawal options under a defined benefit
plan?
Termination of employment, disability, and retirement.
True or false: a defined benefit plan can be a nonpension plan.
False; all defined benefit plans are pension plans.
True or false: a defined benefit plan is subject to minimum funding
rules.
True
What is a defined benefit plan?
A plan that does not maintain individual account balances, but
instead guarantees a benefit to participants.
Whose responsibility is it to ensure that a defined benefit plan has
enough money to provide all participants their retirement benefits?
The employer
What is an advantage of a defined benefit plan?
The contributions can be large, and significantly more than the
maximum allowed for defined contribution plans
What is a disadvantage of a defined benefit plan?
Contributions to employees are required even if the company has a
bad year.
True or false: a defined benefit plan is legally defined as any plan
other than a defined contribution plan.
True
True or false: a defined benefit plan is not required to provide
definitely determinable benefits
,False
True or false: a defined benefit plan maintains individual account
balances to reflect the accrued benefits of the plan participants.
False; Instead, the amount available to provide benefits at retirement
is determined by a formula stated in the plan.
If the investments within a defined benefit plan lose money or perform
worse than expected, who is responsible for contributing more to
make up the difference?
The employer
True or false: In-service withdrawals are not permitted under a
defined benefit plan.
True
What are the permissible withdrawal options under a defined benefit
plan?
Termination of employment, disability, and retirement.
True or false: a defined benefit plan can be a nonpension plan.
False; all defined benefit plans are pension plans.
True or false: a defined benefit plan is subject to minimum funding
rules.
True
Are profit sharing plans a defined benefit or defined contribution form
of plan?
Defined contribution
Can an elective deferral option be offered as part of a profit sharing
plan?
Yes
Does the employer have to make a contribution each year to satisfy
qualifications for a profit sharing plan?
No
True or False: Profit sharing plans require a definite formula in the
plan document to follow for contributions.
, False except for when they are based on the employers own profits
then the process must be described in the plan document.
Name a benefit for the employer in profit sharing plans.
Flexibility in when and how much they contribute.
Can a profit sharing plan allow in-service distributions?
Yes. Profit sharing plans can allow for in-service distributions, which
includes hardship distributions.
Where are the assets held in a profit sharing plan?
In a trust with investments
Are the allocation of funds in a profit sharing fund up to the
employers discretion?
No, allocation must follow an outlined formula in the plan document.
What are the features of a profit sharing plan?
A profit-sharing plan is a defined contribution plan under which the
employer's contribution each year may be determined at the
employer's discretion.
Must the employer fund a contribution to a profit sharing plan each
year?
No, the employer does not have to fund a contribution each year.
However, they are required to be substantial and recurring.
Can a participant contribute 401(k) deferrals to Money Purchase
plans?
No, only contributions can be Employer Contributions
Are money purchase plans a defined benefit or defined contribution
form of plan?
Defined Contribution
Are money purchase plans a pension plan or nonpension plan?
Pension Plan
In-service distributions are permitted from money purchase plans to a
participant who has reached age 59 ½.
True
