CEBS
RPA 2 Exam Preparation
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, Distribution occurred b/c of IRS levy on account to pay taxes.
Premature distributions from
IRAs exempt from penalty if:
Attained age 59 1/2; disabled; died and payment made to
beneficiary or estate; pay first-time home buyer expenses, not to
IRA qualified distributions include: exceed $10k.
Pension wear away
Term used to describe condition
that occurs b/c of different
accrual patterns when traditional
DB plan converted to cash
balance plan:
IRC mandate that income from deferred comp arrangements not
Section 409A be deferred beyond year in which comp is earned.
10%
Qualified retirement plans
required to have fidelity bond
covering what %?
Involves investing the same amount of money on periodic basis,
Dollar cost averaging whether over- or under-priced.
varies depending on intent of executive arrangement
Vesting provisions of executive
retirement arrangements:
6%
Excess contribution to IRA
subject to nondeductible excise
tax of:
Earned income of working spouse
Nonworking spouse may
establish IRA using what types of
payment as basis for eligibility?
Not liable since investment mgmt svcs delegated
Fiduciary liable for duly appointed
and monitored investment mgr if
performance of plan below
benchmark?
1% to 1.25%
Typical range for % of earnings
credited under % of earnings per
year formula?
ER gets corporate income tax deduction for amount of comp
Tax treatment of NQSO (NQ
income EE realizes at exercise of option.
stock options) for ER:
Nondeductible excise tax of 50%
Penalty for failure to make
required distribution of at least
correct amount from qualified
retirement plan:
RPA 2 Exam Preparation
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, Distribution occurred b/c of IRS levy on account to pay taxes.
Premature distributions from
IRAs exempt from penalty if:
Attained age 59 1/2; disabled; died and payment made to
beneficiary or estate; pay first-time home buyer expenses, not to
IRA qualified distributions include: exceed $10k.
Pension wear away
Term used to describe condition
that occurs b/c of different
accrual patterns when traditional
DB plan converted to cash
balance plan:
IRC mandate that income from deferred comp arrangements not
Section 409A be deferred beyond year in which comp is earned.
10%
Qualified retirement plans
required to have fidelity bond
covering what %?
Involves investing the same amount of money on periodic basis,
Dollar cost averaging whether over- or under-priced.
varies depending on intent of executive arrangement
Vesting provisions of executive
retirement arrangements:
6%
Excess contribution to IRA
subject to nondeductible excise
tax of:
Earned income of working spouse
Nonworking spouse may
establish IRA using what types of
payment as basis for eligibility?
Not liable since investment mgmt svcs delegated
Fiduciary liable for duly appointed
and monitored investment mgr if
performance of plan below
benchmark?
1% to 1.25%
Typical range for % of earnings
credited under % of earnings per
year formula?
ER gets corporate income tax deduction for amount of comp
Tax treatment of NQSO (NQ
income EE realizes at exercise of option.
stock options) for ER:
Nondeductible excise tax of 50%
Penalty for failure to make
required distribution of at least
correct amount from qualified
retirement plan:
