100+ Free NIPA APR Practice Questions

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Question 1

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A QDRO (Qualified Domestic Relations Order) is a court order that:

Permits the plan administrator to unilaterally distribute benefits

Replaces the plan document

Is required for every divorce

Creates or recognizes the right of an alternate payee (typically a former spouse) to receive all or a portion of a participant's qualified plan benefits, and that meets the §414(p) qualification requirements

to track

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NIPA APA Accredited Pension Administrator

Practice Questions100 questions

2026 Statistics

Key Facts: NIPA APR Exam

2 exams

APR-1 + APR-2

NIPA APR designation page

$325/$475

Member vs Non-Member Fee

NIPA APR pricing schedule

3 windows/yr

Testing Windows

May 15-June 15, Aug 1-31, Nov 1-Dec 31

Kryterion

Exam Provider (Webassessor)

NIPA Designation Exam page

10 hrs/yr

Continuing Education

NIPA APR maintenance rules

3 years

Window to Complete Both Exams

NIPA designation timetable

The NIPA APR is a two-exam consulting credential administered online through Kryterion's Webassessor platform across three annual testing windows (May 15-June 15, August 1-31, November 1-December 31). APR-1 is unproctored and APR-2 is proctored at a Kryterion testing center. Each exam is $325 for NIPA members and $475 for non-members, with a $150 reduced re-take fee. Candidates must also hold a FINRA Series 6/7/65/66/24 or insurance license (or an ERPA designation), maintain a Business Owner or Executive NIPA membership, and complete 10 CE hours annually to keep the APR designation active.

Sample NIPA APR Practice Questions

Try these sample questions to test your NIPA APR exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A safe-harbor 401(k) plan must satisfy ADP automatically through one of two contribution structures. Which pair correctly states the safe-harbor basic match and minimum nonelective formula?

A.Basic match: 100% of the first 3% of comp plus 50% of the next 2%; nonelective: 3% of compensation to all NHCEs

B.Basic match: 50% of the first 6% of comp; nonelective: 5% of compensation to all NHCEs

C.Basic match: 100% of the first 6% of comp; nonelective: 2% of compensation to all eligible participants

D.Basic match: 100% on first 5% of comp; nonelective: 4% of compensation to all NHCEs

Explanation: Under IRC §401(k)(12), the safe-harbor basic match is 100% of the first 3% of compensation plus 50% of the next 2%, yielding a maximum 4% of compensation. The alternative is a 3% nonelective contribution to all eligible NHCEs. Both must be 100% vested when contributed.

2A profit-sharing plan uses permitted disparity (integration with Social Security). What is the maximum disparity (excess) allocation rate when the base allocation rate is 5.7% of compensation up to the integration level?

A.5.7% on excess compensation, yielding total 11.4% on excess

B.3% on excess compensation, yielding total 8.7% on excess

C.5.4% on excess compensation, yielding total 11.1% on excess

D.8.7% on excess compensation, yielding total 14.4% on excess

Explanation: Under IRC §401(l), the maximum disparity for a DC plan is the lesser of (a) the base contribution rate or (b) 5.7% (when integration level equals taxable wage base). So with a 5.7% base rate, the excess rate can also be 5.7%, totaling 11.4% on compensation above the integration level.

3A plan sponsor wants to maximize owner contributions in a 401(k) plan with a cross-tested allocation. Which is the BEST starting point for design analysis?

A.Group the owner in a separate allocation rate group from staff and confirm each rate group passes the §401(a)(4) ratio percentage or average benefits test

B.Allocate all contributions pro rata to compensation, then test under ADP/ACP only

C.Use a flat-dollar allocation so every participant receives the same dollar amount

D.Apply integration with Social Security, which automatically passes general nondiscrimination

Explanation: Cross-tested (new comparability) plans assign participants into separate rate groups (often by job title, ownership, or class). Each rate group must pass general nondiscrimination testing under §401(a)(4) — typically the ratio percentage test or the average benefits test. The plan must also satisfy the gateway minimum.

4For a cross-tested DC plan to use the average benefits test on an equivalent benefits basis, what minimum gateway allocation must each NHCE receive?

A.At least 5% of compensation OR 1/3 of the highest HCE allocation rate, whichever is less

B.At least 3% of compensation regardless of HCE allocation

C.At least 7.5% of compensation in all cases

D.No gateway is required if all rate groups pass the ratio percentage test

Explanation: Treas. Reg. §1.401(a)(4)-8 requires that to cross-test a DC plan on a benefits basis, each NHCE must receive an allocation rate of at least 5% of §415 compensation OR 1/3 of the highest HCE allocation rate, whichever is less. This is the 'gateway' minimum.

5Which test must each rate group in a cross-tested plan satisfy under IRC §401(a)(4)?

A.Ratio percentage test (≥70%) OR the nondiscriminatory classification + average benefit percentage test

B.ADP test only

C.ACP test only

D.Top-heavy minimum test

Explanation: Each rate group is treated as a separate plan for coverage purposes and must satisfy either the ratio percentage test (NHCE coverage ratio ÷ HCE coverage ratio ≥ 70%) OR pass the nondiscriminatory classification test combined with the average benefit percentage test.

6A cash balance plan credits each participant with a 'pay credit' of 5% of compensation and an 'interest credit' tied to the 30-year Treasury rate. Which design element does this describe?

A.The hypothetical account formula used in a cash balance hybrid DB plan

B.A traditional defined benefit final-average-pay formula

C.A money purchase pension allocation

D.A target benefit plan accrual

Explanation: Cash balance plans are defined benefit plans expressed as hypothetical individual accounts. Each year a participant earns a pay credit (often a percentage of comp) and an interest credit tied to a permissible rate such as the 30-year Treasury or actual trust return (capped).

7Under the market rate of return safe harbor in Treas. Reg. §1.411(b)(5), which is a permissible interest credit rate?

A.Actual rate of return on plan assets, subject to a cumulative floor of zero at annuity starting date

B.A fixed 8% guaranteed rate

C.Twice the long-term applicable federal rate

D.Any rate the sponsor chooses without restriction

Explanation: Treas. Reg. §1.411(b)(5) safe harbors several interest crediting rates, including the actual rate of return on plan assets if the plan is diversified to minimize volatility. A cumulative floor (typically 0%) at the annuity starting date prevents 'whipsaw' from reducing accrued benefits.

8Two corporations are commonly owned: ABC Corp owns 85% of XYZ Corp. Under IRC §414(b), what is the result?

A.ABC and XYZ form a parent-subsidiary controlled group; their employees are aggregated for qualified plan testing

B.ABC and XYZ are unrelated employers; separate testing applies

C.Aggregation applies only if both corporations adopt the same plan

D.Aggregation is required only for top-heavy testing

Explanation: Under IRC §414(b) and §1563, a parent-subsidiary controlled group exists when one entity owns at least 80% of another. Employees of both must be aggregated for §410(b) coverage, §401(a)(4) nondiscrimination, §415 limits, §404 deduction limits, and top-heavy testing.

9Five unrelated individuals each own 20% of Corp A and Corp B in the SAME proportions. Which controlled-group test must be applied?

A.Brother-sister controlled group test under §1563: 80% common ownership AND >50% identical ownership

B.Parent-subsidiary test only (80% ownership of one entity by another)

C.Affiliated service group test under §414(m)

D.Management organization test under §414(n)

Explanation: Brother-sister controlled groups under IRC §1563(a)(2) require five or fewer common owners (individuals, estates, trusts) holding (i) at least 80% of voting power or value across the businesses AND (ii) more than 50% identical ownership taking into account the smallest ownership interest of each owner in each business.

10An A-Organization (A-Org) affiliated service group under IRC §414(m) requires which two elements?

A.(1) The A-Org is a service organization with ownership in a First Service Organization (FSO), AND (2) the A-Org regularly performs services for the FSO or is regularly associated in performing services for third parties

B.Only common ownership of at least 80% between the FSO and the A-Org

C.The A-Org leases more than half of its employees from the FSO

D.The A-Org is a management organization that performs services for one principal client

Explanation: An A-Org ASG under §414(m)(2)(A) exists where a service organization (A-Org) is a partner or shareholder in a First Service Organization (FSO) AND either regularly performs services for the FSO OR is regularly associated with the FSO in performing services for third parties.

About the NIPA APR Exam

The Accredited Pension Representative (APR) is NIPA's consulting-level credential for retirement plan personnel, financial planners, and Registered Investment Advisors. The two-exam program (APR-1 Fundamentals of Qualified Plan Administration and APR-2 Advanced Topics in Retirement Plans) goes beyond the operational APA designation into advanced plan design, cross-testing, cash balance arrangements, combo DB/DC plans, controlled groups and affiliated service groups, EPCRS corrections, SECURE 2.0 implementation, MEP/PEP strategy, mergers and terminations, and ERISA fiduciary topics. Candidates must also hold a FINRA Series 6, 7, 65, 66, or 24, an insurance license, or an ERPA designation to receive the APR.

Questions

100 scored questions

Time Limit

Scheduled Webassessor appointment; varies by APR course

Passing Score

70% (community-reported; NIPA does not publish an official cut score)

Exam Fee

$325 member / $475 non-member per exam (National Institute of Pension Administrators (NIPA))

NIPA APR Exam Content Outline

15%

Advanced Plan Design

Safe-harbor 401(k) (3% nonelective vs basic match), cross-tested profit sharing, integrated/permitted disparity, combo arrangements, and HCE/key employee benefit maximization

12%

Controlled Groups & Affiliated Service Groups

IRC §414(b) parent-subsidiary 80% test, §1563 brother-sister 80% common ownership plus 50% effective control, §414(c) trades or businesses under common control, and §414(m) A-Org/B-Org/M-Org ASG rules

12%

Cross-Tested & New Comparability

Rate group testing under §401(a)(4), allocation rate vs equivalent benefit accrual rate, gateway minimum (5% allocation or 1/3 of highest HCE allocation rate), and average benefits test

10%

Cash Balance Design

Hypothetical accounts with pay credits and interest credits, market rate-of-return safe harbor under Treas. Reg. §1.411(b)(5), §415 lump-sum limits, and combo with 401(k)/profit sharing

Combo DB/DC Plans

Aggregated §401(a)(4) testing, §401(a)(26) minimum participation in DB, §404(a)(7) combined deduction limit (lesser of 25% comp or DB minimum required + 6% comp), and PBGC coverage analysis

12%

Corrections (EPCRS / VFCP)

EPCRS (Rev. Proc. 2021-30 as expanded by SECURE 2.0): Self-Correction Program (SCP) extended for significant operational failures, Voluntary Correction Program (VCP) with IRS user fee, Audit CAP, Anonymous VCP, and DOL VFCP for late deposits and other prohibited transactions

12%

SECURE 2.0 Implementation

Section 101 auto-enrollment 3-10% for new plans starting 2025, Section 603 Roth catch-up for high earners, Section 107 RMD age 73 (2023) rising to 75 (2033), Section 110 student-loan matching contributions, Section 103 Saver's Match, Section 127 emergency savings accounts

MEP / PEP Strategy

SECURE Act §101 created Pooled Employer Plans run by a registered Pooled Plan Provider, Multiple Employer Plans (MEPs) under §413(c), and elimination of the one-bad-apple rule for PEPs

Plan Mergers, Spinoffs, Terminations

IRC §414(l) anti-cutback in mergers/spinoffs, DC termination (board resolution, notice to participants, final Form 5500-EZ or 5500-SF, IRS Form 5310 optional determination letter), and PBGC standard vs distress termination for covered DB plans

Fiduciary, ERISA & Litigation

ERISA §404(a) duties of loyalty/prudence/diversification/document compliance, §406 prohibited transactions, §408(b)(2) covered service provider fee disclosure, and recent excessive-fee litigation trends

How to Pass the NIPA APR Exam

What You Need to Know

Passing score: 70% (community-reported; NIPA does not publish an official cut score)
Exam length: 100 questions
Time limit: Scheduled Webassessor appointment; varies by APR course
Exam fee: $325 member / $475 non-member per exam

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

NIPA APR Study Tips from Top Performers

1Drill the §414(b)/§1563 controlled-group tests with worked examples — parent-sub 80% ownership and brother-sister 80% common + 50% effective control trip up most candidates

2Master the new-comparability gateway: a non-HCE must receive at least 5% of compensation OR one-third of the highest HCE allocation rate before rate-group testing is allowed

3Memorize SECURE 2.0 effective dates: RMD age 73 in 2023, 75 in 2033; auto-enrollment for new plans starting 2025; Roth catch-up for high earners effective 2026

4Compare EPCRS programs side-by-side: SCP (no IRS fee, expanded under SECURE 2.0), VCP (IRS user fee, anonymous option available), Audit CAP (closing agreement during exam)

5Walk through a §404(a)(7) combo deduction limit calculation — the lesser of 25% of compensation or the DB minimum required contribution plus 6% of compensation, with the 6% limit applied to defined contribution

Frequently Asked Questions

What is the NIPA APR designation?

The Accredited Pension Representative (APR) is NIPA's consulting-level credential for retirement plan personnel, financial planners, and Registered Investment Advisors. It goes beyond the operational APA designation into advanced plan design, cross-testing, cash balance arrangements, controlled groups, EPCRS corrections, SECURE 2.0 implementation, and ERISA fiduciary issues. To earn the APR, candidates pass APR-1 and APR-2 and hold a FINRA Series 6/7/65/66/24, an insurance license, or an ERPA designation.

How is the APR exam structured?

APR is a two-exam program: APR-1 covers Fundamentals of Qualified Plan Administration and is administered online unproctored, while APR-2 covers Advanced Topics in Retirement Plans and is proctored at a Kryterion testing location. Both are multiple-choice exams delivered through Kryterion's Webassessor platform. NIPA offers three testing windows per year: May 15 to June 15, August 1 to August 31, and November 1 to December 31.

How much do the APR exams cost in 2026?

Each APR exam costs $325 for NIPA members and $475 for non-members, paid through NIPA at the time of enrollment. Optional practice exams are $75 (member) or $100 (non-member) per course, and the APR-1 PDF textbook is $150-175 with the APR-2 online textbook at $325-350. A failed or skipped exam can be re-taken in the next window for a reduced $150 fee using a discount code.

What is the passing score for the APR exams?

NIPA does not officially publish a numerical passing score, but candidate community reports indicate 70% is the cut score for APR exams. Webassessor reports pass/fail and a numeric score immediately after submission, and a copy is emailed to both the candidate and NIPA headquarters. Always confirm the current passing standard with NIPA headquarters before testing.

What are the APR prerequisites and ongoing requirements?

To earn the APR, you must pass both APR exams AND hold a FINRA Series 6, 7, 65, 66, or 24 license, an active insurance license, or an ERPA designation. To maintain the APR, you must complete 10 hours of continuing professional education each year and hold a NIPA membership at the Business Owner or Executive level annually. Both APR exams must be completed within three years of taking the first exam.

How long should I study for the APR exams?

Most candidates plan 150 to 250 hours across both APR courses, with APR-2 typically requiring more time than APR-1 because of its consulting-depth advanced design content. Allocate the largest blocks to cross-tested allocations, cash balance hybrid plans, controlled groups and affiliated service groups, EPCRS correction methods, and SECURE 2.0 implementation. Use NIPA's optional practice exam packs as your final pacing check.

How does the APR compare to NIPA's APA designation?

The APA (Accredited Pension Administrator) is NIPA's operational TPA credential focused on day-to-day plan administration, while the APR is the consulting-level credential geared toward financial professionals and RIAs who advise plan sponsors on design and strategy. APR also requires a FINRA series or insurance license, which APA does not, reflecting its consulting/representation focus. Many professionals earn both to cover the full administration-plus-consulting spectrum.