NTSA TGPC Tax-Exempt & Governmental Plan Consultant

Which type of employer is NOT eligible to sponsor an IRC 403(b) plan?

• AA for-profit closely held corporation
• BA public school district
• CA 501(c)(3) tax-exempt hospital
• DA church organization under IRC 414(e)

What is the 2026 IRC 402(g) elective deferral limit for 403(b) plans?

• A$24,500
• B$23,500
• C$23,000
• D$22,500

Under the universal availability rule of IRC 403(b)(12)(A)(ii), which exclusion is permissible?

• AEmployees who normally work fewer than 20 hours per week
• BEmployees with less than 1 year of service
• CHourly employees as a class
• DEmployees who already participate in a 457(b) plan

A 60-year-old employee participating in a 403(b) plan in 2026. What is the maximum combined elective deferral including the SECURE 2.0 super catch-up (assume no 15-year service catch-up)?

• A$35,750
• B$32,500
• C$31,000
• D$24,500

Which of the following is automatically considered a non-ERISA 403(b) plan without applying the DOL safe harbor?

• AA governmental 403(b) plan sponsored by a public school district
• BA 403(b) plan sponsored by a private 501(c)(3) hospital
• CA 403(b) plan sponsored by a non-profit university
• DA 403(b) plan sponsored by a 501(c)(3) charity with employer matching contributions

Under IRC 402(g)(7), the 15-year service catch-up for 403(b) plans is limited to which lifetime maximum?

• A$15,000
• B$3,000
• C$5,000
• D$25,000

Which type of 457(b) plan must be held in trust for the exclusive benefit of participants?

• AGovernmental 457(b)
• BTop-hat 457(b) for tax-exempt employers
• C457(f) ineligible plans
• DERISA 403(b) plans

What is the 2026 IRC 415(c) annual additions limit applicable to 403(b) plans?

• A$70,000
• B$69,000
• C$66,000
• D$71,000

Under IRC 457(b)(3), the special last 3-year catch-up allows a governmental 457(b) participant to defer up to what maximum in 2026?

• ATwice the basic 402(g) limit ($49,000)
• BThe basic limit plus $8,000
• CThe basic limit plus $11,250
• DThree times the basic limit

When does income become taxable to the participant under an IRC 457(f) ineligible plan?

• AWhen the substantial risk of forfeiture lapses (vesting)
• BWhen the participant takes a distribution
• CWhen the employer contributes to the plan
• DWhen the participant separates from service

Which of the following is a permitted hardship distribution event for a 403(b) plan under the safe harbor rules?

• AMedical care expenses for the participant, spouse, or dependents
• BPurchase of a vacation home
• CRepayment of credit card debt for convenience
• DCosmetic surgery for the participant's adult sibling

Under IRC 72(p), what is the maximum amount a participant can borrow from a 403(b) plan, assuming no prior loans outstanding?

• AThe lesser of $50,000 or 50% of the vested account balance
• B100% of the vested account balance
• CThe greater of $50,000 or 50% of the vested account balance
• D$10,000 in all cases

When was the IRS written plan document requirement for 403(b) plans first effective?

• AJanuary 1, 2009
• BJanuary 1, 2002
• CJanuary 1, 2017
• DJanuary 1, 2024

Under SECURE 2.0, what is the applicable required minimum distribution (RMD) age for an individual who turns 73 in 2026?

• AAge 73
• BAge 70 1/2
• CAge 72
• DAge 75

Which of the following is a key difference between a governmental 457(b) plan and a top-hat 457(b) plan for tax-exempt employers?

• AGovernmental 457(b) assets can be rolled over to an IRA; top-hat 457(b) cannot
• BOnly top-hat 457(b) requires a trust
• CGovernmental 457(b) is limited to a select group of management/highly compensated employe…
• DTop-hat 457(b) participants can take loans from the plan

Under IRC 414(e), which characteristic is required for a plan to qualify as a 'church plan'?

• AThe plan is established and maintained for employees of a church or a convention of churc…
• BThe plan covers any employee in any industry as long as the sponsor is a religious organi…
• CThe plan is funded entirely by participant contributions
• DThe plan files Form 5500 every year as ERISA-covered

What is the 2026 age-50 catch-up contribution amount for 401(k), 403(b), and governmental 457(b) plans?

• A$8,000
• B$7,500
• C$6,500
• D$10,000

Revenue Ruling 90-24 historically allowed direct transfers between 403(b) contracts. What rule replaced it as of September 24, 2007?

• ATreasury Regulation 1.403(b)-10 contract exchange rules
• BIRC 401(a)(31) direct rollover rules
• CERISA 408(b)(2) service provider disclosure
• DDOL Field Assistance Bulletin 2007-02

Which 403(b) account type is reserved exclusively for church employer plans?

• A403(b)(9) retirement income account
• B403(b)(1) annuity contract
• C403(b)(7) custodial account
• D403(b)(12) universal availability account

Which type of 403(b) employer is automatically EXEMPT from IRC 401(a)(4) nondiscrimination testing on employer contributions?

• AGovernmental and non-electing church plans
• BAll 501(c)(3) hospitals
• CPlans with fewer than 100 participants
• DPlans that match employee deferrals dollar-for-dollar

An advisor recommends that a participant move funds from a 403(b) plan to a top-hat 457(b) plan at a tax-exempt employer. What is the primary problem with this recommendation?

• ATop-hat 457(b) plans cannot receive rollovers from 403(b) plans
• BOnly governmental 457(b) plans may receive 403(b) rollovers
• C457(b) plans never accept rollovers
• DThe IRS would treat the transfer as a hardship

Which IRS form must an ERISA-covered 403(b) plan generally file annually?

• AForm 5500
• BForm 990
• CForm 1040 Schedule R
• DForm 5498

Under the universal availability $200 minimum deferral exception, an employer may exclude employees from the 403(b) plan if their elective deferral would be:

• ALess than $200 per year
• BLess than $200 per pay period
• CLess than $500 per year
• DLess than 1% of compensation

Under IRC 414(h)(2), what is a 'pickup' contribution?

• AAn employer-mandated employee contribution to a governmental plan that is treated as empl…
• BAn employer matching contribution made after year-end
• CA catch-up contribution for late filers
• DA rollover from a prior employer's plan

A participant in a 403(b) plan elects to defer $25,000 in 2026. The participant is 45 years old. What happens to the excess?

• AExcess deferrals over $24,500 must be distributed by April 15 of the following year to av…
• BExcess is automatically converted to Roth contributions
• CExcess remains in the plan but is forfeited to the employer
• DExcess is allowed because of the 15% override rule

Which of the following triggers the 10% early withdrawal penalty under IRC 72(t) for a 403(b) distribution?

• AA participant takes a non-rollover distribution at age 55 after voluntary resignation
• BA participant separates from service in the year they turn age 55 and takes a distribution
• CA participant takes substantially equal periodic payments (SEPP)
• DA participant takes a distribution due to total and permanent disability

Which agency has primary regulatory authority over the fiduciary conduct of ERISA-covered 403(b) plans?

• AU.S. Department of Labor (DOL)
• BInternal Revenue Service (IRS)
• CPension Benefit Guaranty Corporation (PBGC)
• DSecurities and Exchange Commission (SEC)

Under DOL Field Assistance Bulletin 2007-02, a private 501(c)(3) 403(b) plan can remain non-ERISA if employer involvement is limited. Which action would CAUSE the plan to become ERISA-covered?

• AThe employer makes matching contributions to participants' accounts
• BThe employer allows employees to make salary reduction contributions
• CThe employer remits employee deferrals to the vendor
• DThe employer permits but does not require employees to participate

Under IRC 410(b), what is the minimum coverage 'ratio percentage test' threshold?

• A70%
• B50%
• C80%
• D100%

Which of the following 403(b) plan features requires ACP (Actual Contribution Percentage) testing under IRC 401(m)?

• AEmployer matching contributions in a private 501(c)(3) plan
• BEmployee elective deferrals only
• CAfter-tax employee contributions in a governmental plan
• DRoth elective deferrals

Which 2026 IRS limit applies to the 'compensation' of highly compensated employees (HCE) for plan year 2027 determinations?

• A$160,000
• B$155,000
• C$150,000
• D$165,000

Which type of 403(b) plan participant is subject to special MANDATORY Roth treatment for catch-up contributions under SECURE 2.0?

• AParticipants with prior-year FICA wages exceeding $150,000
• BAll participants over age 60
• COnly participants in ERISA plans
• DAll catch-up eligible participants regardless of income

An employee with 18 years of service at a 501(c)(3) hospital wants to use the 15-year service catch-up. The employee has made $40,000 of prior elective deferrals. What is the maximum 15-year catch-up for 2026?

• A$3,000 (annual limit applies)
• B$15,000 (lifetime maximum)
• C$50,000 (5,000 x 10 years)
• D$0 (already exceeded $5,000 x years formula)

Which ARA Code of Professional Conduct precept addresses conflicts of interest?

• APrecept 7: Conflicts of Interest
• BPrecept 1: Professional Integrity
• CPrecept 10: Communications
• DPrecept 12: Cooperation

Under the 2026 SECURE 2.0 rules, what is the maximum a 55-year-old governmental 457(b) participant can defer in total (assuming basic limit only and no last 3-year catch-up)?

• A$32,500
• B$24,500
• C$35,750
• D$28,000

Can a top-hat 457(b) participant at a tax-exempt employer also make age-50 catch-up contributions under IRC 414(v)?

• ANo — IRC 414(v) does not apply to top-hat 457(b) plans
• BYes — all 457(b) plans allow age-50 catch-up
• COnly if the employer files a special election
• DOnly if the participant has 15+ years of service

Which of the following statements about the coordination of 403(b) and 457(b) limits is correct for 2026?

• AA participant can defer up to $24,500 to a 403(b) AND a separate $24,500 to a 457(b)
• BTotal 403(b) and 457(b) deferrals are limited to $24,500
• C457(b) deferrals reduce the 403(b) limit dollar-for-dollar
• DOnly governmental employees can split deferrals across both plans

Which event is generally NOT a distributable event from a 403(b) elective deferral account?

• AContinued employment past age 50
• BSeverance from employment
• CAttainment of age 59 1/2
• DDeath of the participant

Which SECURE 2.0 provision allows a 403(b) plan to be part of a Multiple Employer Plan (MEP) or Pooled Employer Plan (PEP)?

• ASection 106 — extending MEP/PEP rules to 403(b) plans effective 2023
• BSection 305 — Self-Correction Program expansion
• CSection 109 — student loan match
• DSection 603 — Roth catch-up

A 403(b) participant takes a hardship distribution. What is the post-2018 rule regarding required suspension of contributions afterward?

• ASuspension of contributions is no longer required
• BContributions must be suspended for 6 months
• CContributions must be suspended for 12 months
• DContributions must be permanently terminated

Which compensation definition under IRC 415(c)(3) applies to 403(b) plan annual additions testing?

• AIncludible compensation: W-2 wages plus elective deferrals (415 includible)
• BNet earnings from self-employment only
• CAdjusted gross income from the prior year
• DBox 1 of Form W-2 minus all deferrals

Which IRC provision provides the church plan election to become ERISA-covered?

• AIRC 410(d)
• BIRC 414(e)
• CIRC 403(b)(9)
• DIRC 501(c)(3)

What is the basic 2026 contribution limit for a governmental 457(b) plan?

• A$24,500
• B$23,500
• C$24,000
• D$22,500

Under IRC 401(a)(9), failure to take a required minimum distribution (RMD) results in what excise tax (as modified by SECURE 2.0)?

• A25% excise tax on the RMD shortfall (reduced to 10% if corrected within the correction wi…
• B50% excise tax on the RMD shortfall
• C10% additional tax under IRC 72(t)
• DNo penalty if corrected within 60 days

Which of the following statements about 403(b)(7) custodial accounts is CORRECT?

• AInvestments are limited to regulated investment company stock (mutual funds)
• BInvestments can include any publicly traded security
• CCustodial accounts are reserved exclusively for governmental employers
• DCustodial accounts must be held in an insurance company annuity contract

Under SECURE 2.0 Section 109, what new employer matching contribution feature can a 403(b) plan offer?

• AMatching contributions on qualified student loan payments
• BMandatory matching of all elective deferrals
• CMatching only at the 50th percentile of HCE deferrals
• DMatching capped at $1,000 per year

Which of the following is NOT a permissible reason for a hardship distribution under SECURE 2.0 expanded rules?

• ARoutine vacation expenses
• BFederally declared disaster expenses
• CDomestic abuse victim distributions (up to $10,000)
• DBurial or funeral expenses