ASPPA QPA Qualified Pension Administrator

What is the 2026 IRC §415(b) maximum annual benefit limit for a defined benefit plan participant whose benefit commences at age 62?

• A$245,000
• B$275,000
• C$290,000
• D$330,000

What is the 2026 IRC §401(a)(17) annual compensation cap that may be considered for DB benefit accruals?

• A$305,000
• B$330,000
• C$345,000
• D$360,000

Under IRC §401(a)(26), a defined benefit plan must cover the lesser of which two thresholds on each day of the plan year?

• A40 employees or 50% of all employees
• B50 employees or 70% of all employees
• C100 employees or 80% of all employees
• D25 employees or 40% of all employees

A traditional DB plan uses a unit credit benefit formula of 1.5% of final-average compensation per year of service. A participant has 20 years of service and a high-three-year average of $200,000. What is the annual accrued benefit before applying any limit?

• A$30,000
• B$45,000
• C$60,000
• D$75,000

Which DB benefit formula calculates the accrued benefit as a percentage of compensation earned in each year, totaled across all years of participation, rather than averaging compensation over a final period?

• AFinal-average-pay formula
• BCareer-average formula
• CUnit credit formula based on final pay
• DCash balance pay-credit formula

Which of the following vesting schedules is NOT permitted for participant-derived benefits in a defined benefit plan under IRC §411(a)(2)(A)?

• A5-year cliff vesting
• B3-to-7-year graded vesting
• C3-year cliff vesting
• D100% immediate vesting

Under §415(b), the dollar limit must be actuarially reduced when benefits commence before what age?

• AAge 55
• BAge 59½
• CAge 62
• DAge 65

When a DB benefit commences after age 65, the §415(b) dollar limit may be:

• AReduced actuarially for late retirement
• BIncreased actuarially for late retirement
• CHeld constant at the age-62 limit
• DCapped at 100% of the age-65 limit only

Under IRC §415(b), the maximum annual benefit a participant may receive is the LESSER of the dollar limit or what compensation-based amount?

• A100% of the participant's high-three-year average compensation
• B150% of the participant's current-year compensation
• C200% of the participant's average career compensation
• D100% of the §401(a)(17) compensation limit

For a calendar-year DB plan, by what date must the plan's Adjusted Funding Target Attainment Percentage (AFTAP) be certified by the enrolled actuary to avoid presumption rules under §436?

• AApril 1
• BJuly 1
• COctober 1
• DDecember 31

Under IRC §430, the minimum required contribution for a single-employer DB plan with a funding shortfall generally equals which of the following?

• ATarget normal cost only
• BTarget normal cost plus shortfall amortization charges plus waiver amortization charges
• CFunding target divided by remaining service life
• DPlan assets minus liabilities, divided by 7

Under IRC §430, funding shortfalls are amortized over how many years using the shortfall amortization charge?

• A5 years
• B7 years
• C10 years
• D15 years

Quarterly contributions are required for a single-employer DB plan if the prior year's funding target attainment percentage was less than what level?

• A60%
• B80%
• C100%
• D110%

Under §436, what AFTAP level triggers a freeze on future benefit accruals (in addition to other restrictions)?

• ABelow 60%
• BBelow 70%
• CBelow 80%
• DBelow 90%

Under §436, accelerated distributions (such as lump sums) are completely prohibited when the AFTAP falls below what level?

• A60%
• B70%
• C80%
• D100%

A plan is considered 'at-risk' under §430(i) when which two conditions are simultaneously met for a plan year?

• AFunded ratio below 80% on regular assumptions AND below 70% on at-risk assumptions
• BFunded ratio below 60% on regular assumptions AND below 50% on at-risk assumptions
• CFunded ratio below 90% on regular assumptions AND below 80% on at-risk assumptions
• DFunded ratio below 100% AND at least one HCE retires during the year

Under §436(c), what AFTAP threshold restricts plan amendments that increase benefits?

• ABelow 60% AFTAP
• BBelow 70% AFTAP
• CBelow 80% AFTAP
• DBelow 100% AFTAP

Which form is used to file the PBGC standard termination notice (Form 500) with the PBGC for a single-employer DB plan?

• AForm 1
• BForm 5500
• CForm 500
• DForm 5310

How many days before the proposed termination date must a Notice of Intent to Terminate (NOIT) be issued to affected parties in a PBGC standard termination?

• ABetween 30 and 60 days before
• BBetween 60 and 90 days before
• CBetween 90 and 180 days before
• DAt least 270 days before

PBGC single-employer premiums consist of which two components?

• AFlat-rate per-participant premium and variable-rate premium on unfunded vested benefits
• BSliding-scale per-asset premium and benefit-payment premium
• CPlan-administrator premium and fiduciary-bond premium
• DEmployer-deduction premium and employee-share premium

By what date must a calendar-year DB plan file its PBGC Comprehensive Premium Filing (Form 1) and pay both flat-rate and variable-rate premiums?

• AApril 15
• BJuly 15
• COctober 15
• DDecember 31

Which type of termination is available when a single-employer DB plan has sufficient assets to pay all benefit liabilities?

• ADistress termination
• BInvoluntary termination
• CStandard termination
• DPartial termination

Under PBGC regulations, by what date must Form 501 (Post-Distribution Certification for Standard Termination) be filed after distributions are completed?

• AWithin 7 days after the final distribution
• BWithin 30 days after the final distribution
• CWithin 90 days after the final distribution
• DWithin 180 days after the final distribution

Under the §401(a)(4) 'top-25' restriction, lump sums and other accelerated payments to the 25 highest-paid HCEs are limited unless the plan's funded ratio (after the distribution) is at least:

• A80%
• B90%
• C100%
• D110%

Which of the following is NOT a permitted security alternative under the §401(a)(4) top-25 HCE restriction when an HCE wants a lump sum but the funded ratio is below 110%?

• AEstablish an escrow account with the lump-sum recipient
• BPost a surety bond securing the restricted amount
• CHave the HCE provide a personal guarantee with no collateral
• DProvide a bank letter of credit for the restricted amount

The §401(a)(4) top-25 restriction applies to which group of participants in any plan year?

• AThe 25 highest-paid current and former HCEs determined by current and prior-year compensa…
• BAll HCEs without compensation ranking
• CThe 25 highest-paid NHCEs
• DAll participants over age 50

A small benefit exemption exempts a restricted HCE's lump sum from the top-25 restriction when the value of the benefit does not exceed:

• A$1,000
• B$5,000
• C$7,000
• D$10,000

A cash balance plan credits each participant's hypothetical account with which two annual amounts?

• APay credit and interest credit
• BService credit and longevity credit
• CMatch credit and forfeiture allocation
• DDefined benefit accrual and defined contribution allocation

Under the §411(b)(5)(B) market rate of return safe harbor, which fixed interest crediting rate is commonly used for cash balance plans?

• A3%
• B5%
• C8%
• D10%

Under §411(b)(5)(A), a cash balance plan is protected from age-discrimination challenges if its accrued benefit:

• AEquals the hypothetical account balance and is not less for an older similarly situated p…
• BIncreases each year by at least 7%
• CEquals the §415(b) maximum every year
• DIs paid only as a single life annuity

When a traditional DB plan is converted to a cash balance plan, the 'wear-away' phenomenon refers to:

• AFuture pay credits accruing at a faster rate to make up for past service
• BA period where the opening hypothetical account is less than the prior accrued benefit, s…
• CForfeiture of vested benefits at conversion
• DLoss of investment earnings due to plan asset reallocation

A qualified joint and survivor annuity (QJSA) provides a survivor annuity to the surviving spouse equal to no less than what percentage of the annuity payable during the joint lives?

• A25%
• B50%
• C75%
• D100%

Spousal consent to waive the QJSA must be:

• AIn writing and witnessed by a notary public or a plan representative
• BOral and recorded in plan minutes
• CImplied if the spouse fails to object within 30 days
• DRequired only if the spouse is younger than the participant

The §417(a)(6) QJSA election period during which a participant may waive (and revoke a waiver) is generally:

• A30 days ending on the annuity starting date
• B90 days ending on the annuity starting date
• C180 days ending on the annuity starting date
• D365 days ending on the annuity starting date

A qualified preretirement survivor annuity (QPSA) is payable to:

• AThe surviving spouse of a vested participant who dies before the annuity starting date
• BAny beneficiary named by the participant
• CThe participant's estate
• DThe plan itself for reallocation

The required beginning date (RBD) for §401(a)(9) distributions from a DB plan, after SECURE 2.0, is April 1 of the year following the year the participant attains age:

• A70½
• B72
• C73
• D75

Under §417(e)(3), the minimum present value for a lump-sum distribution from a DB plan must be calculated using:

• AThe IRS-prescribed applicable mortality table and the three segment interest rates
• BThe plan's actuarial assumptions used for funding
• CA 7% interest rate and the 1971 GAM mortality table
• DThe PBGC interest rate published for the prior month

What is the mandatory federal income tax withholding rate on an eligible rollover distribution from a DB plan paid directly to the participant (and not via direct rollover)?

• A0%
• B10%
• C20%
• D28%

Under SECURE 2.0, the §411(a)(11) mandatory cash-out threshold (the level at which a plan may distribute a terminated participant's benefit without consent) was increased to:

• A$3,500
• B$5,000
• C$7,000
• D$10,000

A combo plan design (DB + DC) for owner-heavy small business uses cross-testing to push large benefits to owners. When DB and DC plans are permissively aggregated for §401(a)(4) testing, the minimum gateway allocation is:

• A3% of compensation for each NHCE
• B5% of compensation for each NHCE
• CThe lesser of 7.5% of compensation or one-third of the highest HCE allocation rate
• DThe lesser of 10% of compensation or 50% of the highest HCE benefit rate

Under §404(a)(7), the combined deduction limit for a DB+DC arrangement is generally limited to 25% of aggregate compensation, EXCEPT when:

• AThe DB plan covers fewer than 100 participants
• BThe DB plan is PBGC-covered, in which case the combined limit does not apply
• CThe employer is in its first plan year
• DThe HCE deferral rate exceeds 8%

Which DB plan is typically EXEMPT from PBGC coverage under ERISA §4021(b)?

• AA small employer DB plan covering 50 participants
• BAn ESOP
• CAn owner-only DB plan (substantial owners are the only participants)
• DA multiemployer plan

Under top-heavy rules (§416), a DB plan that is top-heavy must provide a minimum benefit to each non-key employee of at least:

• A1% of compensation per year of service, capped at 5%
• B2% of compensation per year of service, capped at 20%
• C3% of compensation per year of service, capped at 15%
• D5% of compensation per year of service, capped at 30%

What is the 2026 IRC §416 key-employee compensation threshold (officers earning more than this amount are key employees)?

• A$160,000
• B$215,000
• C$235,000
• D$280,000

What is the 2026 IRC §414(q) compensation threshold for highly compensated employee (HCE) status (based on prior-year compensation)?

• A$150,000
• B$155,000
• C$160,000
• D$170,000

What is the 2026 Social Security taxable wage base used in DB integration (permitted disparity) calculations?

• A$168,600
• B$176,100
• C$182,400
• D$200,000

Under §410(b), what is the minimum ratio percentage for a DB plan to pass coverage testing without resorting to the average benefit test?

• A50%
• B60%
• C70%
• D80%