Which type of retirement plan allows employees to direct a portion of their pre-tax salary into an individual account, with the employee bearing the investment risk?
Defined Contribution Plans
Question · Easy
Under SECURE 2.0, new 401(k) and 403(b) plans established after December 29, 2022, must implement automatic enrollment. What is the minimum initial default deferral rate?
Question · Medium
Which retirement plan is specifically available to employees of public educational institutions and Section 501(c)(3) tax-exempt organizations?
For 2026, what is the IRC Section 402(g) elective deferral limit for employees under age 50 contributing to a 401(k) plan?
Which type of employer contribution to a 401(k) plan is discretionary and typically depends on company profitability?
An employer adopts the basic safe harbor match formula for its 401(k) plan. What is the maximum employer match percentage if an employee defers 5% or more of compensation?
Section 457(b) deferred compensation plans available to governmental employers differ from 401(k) plans in which significant way?
Which automatic enrollment feature increases an employee's deferral percentage by a set amount each year until reaching a cap?
For 2026, what is the IRC Section 415(c) total annual addition limit for defined contribution plans (employee + employer contributions)?
Which plan design feature allows 401(k) participants to make after-tax contributions and then convert them to a Roth account within the plan, known as the "mega backdoor Roth"?
Question · Hard
A 403(b) plan offers a special catch-up provision for employees with 15+ years of service at qualifying organizations. What is the maximum additional annual contribution allowed under this provision?
An employee is automatically enrolled in a 401(k) plan but does not want to participate. Under the QACA (Qualified Automatic Contribution Arrangement), how long does the employee have to opt out and receive a refund of automatic contributions?
What is the primary difference between a profit-sharing plan and a money purchase pension plan?
Under SECURE 2.0, which new provision allows employers to make matching contributions to retirement plans based on employees' qualified student loan payments?
A new-comparability profit-sharing allocation method allows employers to provide different contribution rates for different groups of employees. What nondiscrimination test must this method pass?
What is the traditional formula used in a defined benefit plan to calculate retirement benefits?
Defined Benefit Plans
Which federal agency insures defined benefit pension plan benefits if the plan sponsor cannot meet its obligations?
A cash balance plan expresses the retirement benefit as a hypothetical account balance. How does the employer typically credit the account?
What type of plan termination occurs when a defined benefit plan has sufficient assets to pay all benefit obligations?
Which actuarial concept determines the amount an employer must contribute to a defined benefit plan to ensure it can pay future promised benefits?
Which hybrid retirement plan combines defined benefit and defined contribution features, providing a lump-sum benefit that grows based on a credited interest rate?
Under the Pension Protection Act (PPA), what happens when a single-employer defined benefit plan's funded percentage falls below 80%?
What is the PBGC flat-rate premium per participant for single-employer defined benefit plans in 2026?
In a defined benefit plan, which party bears the investment risk and the obligation to fund promised benefits?
A pension equity plan credits participants based on a percentage of pay that increases with age or service. Which plan category does it belong to?
Which federal law establishes minimum standards for participation, vesting, benefit accrual, and funding in private-sector retirement plans?
Retirement Plan Regulation
Under ERISA, what is the maximum cliff vesting schedule for employer matching contributions in a 401(k) plan?
Which ERISA fiduciary duty requires plan fiduciaries to act solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits?
Under ERISA Section 406, which of the following constitutes a prohibited transaction?
Which IRS form must retirement plan administrators file annually to report plan financial and operational information?
Under IRC Section 4975, what is the excise tax penalty for engaging in a prohibited transaction that is not corrected within the taxable year?
What is the purpose of the IRS determination letter program for qualified retirement plans?
Under ERISA, which party has the authority to initiate a plan audit and investigate potential fiduciary violations?
Which IRC nondiscrimination test ensures that a retirement plan covers a sufficient percentage of non-highly compensated employees?
Form 5500 Schedule H applies to retirement plans with 100 or more participants and requires which of the following?
A plan fiduciary uses plan assets to pay personal expenses unrelated to the plan. Which ERISA violation has occurred?
Under the IRC, what is a disqualified person in the context of prohibited transaction rules?
Which ERISA Section 408 exemption allows plans to pay reasonable compensation to service providers for necessary services?
The IRS requires retirement plans to satisfy the Section 401(a)(4) nondiscrimination test. What does this test measure?
Which DOL regulation requires retirement plan service providers to disclose all direct and indirect compensation and potential conflicts of interest?
A plan administrator is responsible for managing day-to-day plan operations. Which of the following is NOT typically a plan administrator's responsibility?
Plan Administration
Which participant communication is required under ERISA to describe plan terms, eligibility, benefits, and rights in plain language?
Under the DOL's participant-directed account regulation (ERISA Section 404(c)), what protection do plan fiduciaries receive when participants make their own investment choices?
A terminated participant requests a distribution from a 401(k) plan. The vested balance is $800. What can the plan do without the participant's consent?
What is the standard federal income tax withholding rate for eligible rollover distributions from a qualified retirement plan that are NOT directly rolled over?
Under IRS rules, a 401(k) plan may allow hardship withdrawals. Which of the following is a qualifying event for a hardship withdrawal?
Under IRC Section 72(p), what is the maximum loan amount a participant can borrow from a 401(k) plan?
What is the standard maximum repayment period for a participant loan from a 401(k) plan (not for primary residence purchase)?
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