CEBS RPA 1 MOD 7 QUESTIONS FULLY VERIFIED AND
UPDATED WITH CORRECT REVIEWED ANSWERS.100%
VERIFIED
1. Core elements of 401(k) design: If an employer contribution will be
made level of employer contribution
investment options ottered
2. ERISA Sec. 404(a)(1): Sets out fiduciary duties
Sole interest of plan participants and beneficiaries for the exclusive purpose of providing benefits and
defraying reasonable expenses and acting with due diligence
3. bundled approach: All administrative services provided by one company or set of companies
working
together
4. 401(k) management: Plan
compliance communication
investment and recordkeeping services
directed trustee services
5. Directed trustee services: Trustee acts based on direction from plan sponsor and
administration without
any discretionary powers
6. industry standard for employer 401(k) matching: 50% on the first 6% of deferred
salary
7. Investment Theories: Principles associated with rational investing
8. Modern Portfolio Theory: Constructs portfolios to optimize expected return based on marke
risk
9. Strategic Asset Allocation: Periodically rebalancing portfolio to maintain long-term goal for
asset
allocation
10. 401(k) safe harbor plan design alternatives: Eliminates certain administrative
functions in compliance testing - formulaic plan matches or non-elective contributions
11. issues involving automatic enrollment: Default investment option to exempt
employers from fiduciary obligations
state wage withholding laws conflict with automatic enrollment provisions
disclosure requirements
12. diversification requirements: Participants with 3+ years of service must diversify out
of employer
stock, at least three diversified options must be available
1/
3
UPDATED WITH CORRECT REVIEWED ANSWERS.100%
VERIFIED
1. Core elements of 401(k) design: If an employer contribution will be
made level of employer contribution
investment options ottered
2. ERISA Sec. 404(a)(1): Sets out fiduciary duties
Sole interest of plan participants and beneficiaries for the exclusive purpose of providing benefits and
defraying reasonable expenses and acting with due diligence
3. bundled approach: All administrative services provided by one company or set of companies
working
together
4. 401(k) management: Plan
compliance communication
investment and recordkeeping services
directed trustee services
5. Directed trustee services: Trustee acts based on direction from plan sponsor and
administration without
any discretionary powers
6. industry standard for employer 401(k) matching: 50% on the first 6% of deferred
salary
7. Investment Theories: Principles associated with rational investing
8. Modern Portfolio Theory: Constructs portfolios to optimize expected return based on marke
risk
9. Strategic Asset Allocation: Periodically rebalancing portfolio to maintain long-term goal for
asset
allocation
10. 401(k) safe harbor plan design alternatives: Eliminates certain administrative
functions in compliance testing - formulaic plan matches or non-elective contributions
11. issues involving automatic enrollment: Default investment option to exempt
employers from fiduciary obligations
state wage withholding laws conflict with automatic enrollment provisions
disclosure requirements
12. diversification requirements: Participants with 3+ years of service must diversify out
of employer
stock, at least three diversified options must be available
1/
3
