RPA 1 - Final Exam 100 Questions 2023 100% Verified Answers Top-hat plan - Correct Answer A retirement plan that is unfunded and maintained by an employer primarily for the purpose of providing deferred compensation for a "select
group of management or highly compensated employees" is called a (n):
Economic Benefit - Correct Answer A theory of income taxation that imposes current tax liability on taxpayers who receive something of reasonable value is known as the
doctrine of:
Must be given the election to remain under the pre-amendment vesting schedule for both pre-and post-amendment benefit accruals. - Correct Answer An employee with four years of service participates in a retirement plan. The vesting schedule in this plan is
changed by plan amendment. Under tax law, this plan participant:
An example of a sponsor of a 403(b) plan is - Correct Answer public college Contributions to a profit sharing plan must be made on - Correct Answer A substantial and reoccurring basis Employees withdrawing contributions from a savings incentive match plan for employees (SIMPLE plan) individual retirement account (IRA) during the two-year period beginning on the date of initial participation are subject to a penalty tax of - Correct Answer 25 percent Federal law defines normal retirement age to be the age specified in the plan, but it cannot occur beyond the later of - Correct Answer Age 65 or the fifth anniversary of the participant's date of initial participation For a distribution from a Roth IRA account to receive favorable tax treatment as a qualified distribution, how long must contributions be in the account? - Correct Answer 5 years For all defined contribution plans, there is a uniform employer deduction limit of - Correct Answer 25% of compsensation How did the Pension Protection Act of 2006 change requirements for investment advice provided to individual retirement account (IRA) owners? - Correct Answer The Act requires that fees for such advice not be contingent on the investment option chosen.If a contribution to a profit sharing plan exceeds the maximum deductible contribution limit, the employer can carryover the excess contribution to the succeeding year, but will be subject to an excise tax on the excess contribution of: - Correct Answer 10 percent 1 / 2
If you knew that a vendor servicing a 401(k) plan was clearing trades internally and not using an outside directed trustee, you generally could conclude that: - Correct Answer The vendor was providing plan services as a bundled service provider.In 1948 the National Labor Relations Board (NLRB) found that the provisions of retirement plans affect conditions of employment and that retirement benefits constitute:
- Correct Answer Wages
In addition to current income taxation, any excess contribution to an individual retirement account (IRA) is subject to a nondeductible excise tax of: - Correct Answer 6 percent n general, the aggregate amount of employer contribution allocated to a younger employee under a defined contribution plan compared to that under a defined benefit
plan is: - Correct Answer A higher amount
Key employees, for purposes of the top-heavy rules, include all: - Correct Answer One percent owners receiving annual compensation in excess of $150,000 Of all of the following factors in the Black-Scholes option pricing model, which one is generally deemed to have the most relative impact on the value of the option? - Correct Answer The expected volatility of the underlying stock's market price The annual limit on deferral amounts for an ineligible Section 457 plan is - Correct Answer Unlimited The limitation on exclusions for elective deferrals under 401(k) plans is: - Correct Answer Indexed in increments established by the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) The most frequently used criterion to establish participation in a supplemental executive
retirement plan (SERP) is: - Correct Answer Position and management status
The Supreme Court ruled in Arizona Governing Committee v. Norris that: - Correct Answer Life annuities under an employer-sponsored defined contribution plan must be provided on a uniform basis The vesting provision of executive retirement arrangements: - Correct Answer Varies depending on the intent of the executive arrangement Those questioning the validity of the human depreciation concept of private pensions would argue that the employer should be held responsible only for the increase in the
rate of aging caused by: - Correct Answer Occupational hazards
To receive tax-preferred treatment under an ineligible Section 457 plan, amounts deferred must be - Correct Answer Subject to a substantial risk of forfeiture
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