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100+ Free QKC Practice Questions

Pass your ASPPA Qualified 401(k) Consultant (QKC) exam on the first try — instant access, no signup required.

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For 2026, the IRC §401(a)(17) compensation limit (the maximum compensation that may be considered for plan purposes) is approximately:

A
B
C
D
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2026 Statistics

Key Facts: QKC Exam

55

Exam Questions

ASPPA QKC Candidate Handbook

2.5 hrs

Exam Time Limit

ASPPA QKC Candidate Handbook

70%

Passing Score

ASPPA QKC Candidate Handbook

$455

Standalone Exam Fee

ASPPA 2026 fee schedule

$895

Education + Exam Bundle

ASPPA 2026 fee schedule

QKA

Required Prerequisite

ASPPA QKC eligibility rules

QKC is a closed-book proctored online exam with 55 multiple-choice questions and a 2.5-hour time limit. Candidates must score 70% to pass. The standalone exam fee is $455 in 2026; a bundled education + exam package is $895. Eleven chapters cover leased employees (7%), other employer situations (7%), controlled groups and ASGs (13%), compensation (7%), average benefits test (11%), nondiscrimination (13%), ESOPs (13%), fiduciary standards (7%), prohibited transactions (13%), distributions upon death and life insurance (7%), and the ASPPA Code of Professional Conduct.

Sample QKC Practice Questions

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

1Under IRC §414(n), a leased employee must generally be treated as the recipient employer's employee for qualified plan purposes once which condition is satisfied?
A.The individual has performed services on a substantially full-time basis for at least one year under primary direction or control of the recipient
B.The individual has been on assignment for at least six months regardless of hours
C.The leasing organization sponsors no retirement plan of its own
D.The recipient pays the leasing organization more than $5,000 annually for the services
Explanation: IRC §414(n)(2) treats a worker as a leased employee only after services have been provided to the recipient on a substantially full-time basis for at least one year (generally 1,500 hours within a 12-month period or 75% of customary hours) under the recipient's primary direction or control. Until the one-year/primary-control threshold is met, the worker is the leasing organization's employee for plan coverage purposes.
2A leased employee is excluded from the recipient employer's plan if the leasing organization maintains a safe-harbor plan under IRC §414(n)(5). Which feature is required of that safe-harbor plan?
A.A money purchase pension plan with a 10% non-integrated contribution, immediate participation, and full and immediate vesting
B.A 401(k) plan with at least 3% safe-harbor nonelective contributions
C.A defined benefit plan providing at least a 2% accrual rate per year of service
D.A SEP allowing each leased employee to contribute up to the §402(g) limit
Explanation: IRC §414(n)(5) safe harbor requires the leasing organization to maintain a money purchase pension plan with a nonintegrated contribution rate of at least 10% of compensation, immediate participation, and full and immediate vesting. Additionally, leased employees may not constitute more than 20% of the recipient's nonhighly compensated workforce.
3When a worker meets the leased-employee definition, on whose payroll is the worker reflected for FICA and federal income tax withholding purposes?
A.The leasing organization remains the common-law employer for payroll and withholding even though the recipient must treat the worker as an employee for plan testing
B.The recipient immediately becomes the payroll employer once the one-year threshold is met
C.Both the recipient and the leasing organization must split payroll reporting on a 50/50 basis
D.Payroll reporting transfers to whichever entity pays the higher hourly rate
Explanation: IRC §414(n) is a plan-qualification rule only. Payroll, FICA, and federal income tax withholding stay with the common-law employer, which is the leasing organization. The recipient must include the worker only when applying coverage, nondiscrimination, top-heavy, vesting, and §415 limits.
4Which of the following workers is NOT counted toward the recipient's leased-employee group under §414(n)?
A.An independent contractor who fails the common-law-employee test and does not meet the §414(n) substantially full-time, primary-direction-or-control standard
B.A clerical worker leased through a staffing firm for 16 months at 40 hours per week under the recipient's supervision
C.An IT engineer placed by a leasing firm for 14 months performing core recipient work under recipient direction
D.A project manager assigned for 13 months at 35+ hours per week under recipient supervision
Explanation: A worker who is neither a common-law employee of the recipient nor meets the §414(n) leased-employee tests (substantially full-time, one-year, primary direction or control) is a true independent contractor and is excluded from coverage testing. The other three workers all satisfy the leased-employee criteria.
5For purposes of the §414(n)(5) safe-harbor 20% test, leased employees may not exceed 20% of which population?
A.The recipient's nonhighly compensated workforce
B.The recipient's total workforce including HCEs
C.The leasing organization's total client roster
D.Plan participants benefiting under the recipient's qualified plan
Explanation: The §414(n)(5) safe harbor caps leased employees at 20% of the recipient's nonhighly compensated workforce. The HCE-only cap was rejected because most leased workers are NHCEs. Exceeding 20% disqualifies the entire safe-harbor exclusion.
6A plan sponsor wants to exclude all leased employees from its 401(k). Under §410(b), this exclusion is treated as which type of classification?
A.A statutory exclusion that still requires the plan to satisfy the ratio percentage or average benefits test
B.An automatic safe harbor that never triggers coverage testing
C.A reasonable classification only if approved by the IRS in a determination letter
D.An invalid exclusion that disqualifies the plan
Explanation: Plans may exclude leased employees by name in the plan document, but this exclusion is not statutory like age 21/one-year-of-service. The plan must still demonstrate coverage under §410(b) ratio percentage (≥70%) or the average benefits test once leased employees are included in the testing population.
7Two recipient employers share a single leased employee. How is that employee credited for purposes of §414(n) at each recipient?
A.Each recipient counts the hours actually performed for that recipient when determining substantially full-time status
B.The first recipient to engage the worker counts all hours; subsequent recipients ignore the worker
C.Both recipients must each treat the worker as a full leased employee regardless of hours actually worked
D.Only the leasing organization tracks aggregate hours; recipients ignore the worker
Explanation: §414(n) applies on a recipient-by-recipient basis. Each recipient looks at the hours of service the leased worker performed for that specific recipient when evaluating the substantially-full-time standard. The leasing organization's aggregate hours across multiple recipients are not allocated jointly to any one recipient.
8Which of the following is a permissible source from which a sole proprietor's earned income is determined for qualified plan purposes?
A.Net earnings from self-employment under §1402(a) reduced by the deductible portion of self-employment tax and the plan contribution made on behalf of the owner
B.Gross Schedule C revenue before any business deductions
C.W-2 Box 1 wages issued to the sole proprietor from the business
D.Schedule C net profit before deducting half of self-employment tax but reduced by the entire SE tax
Explanation: IRC §401(c)(2) defines a self-employed individual's earned income as net earnings from self-employment under §1402(a), reduced by the deduction allowed under §164(f) for one-half of SE tax and by the qualified-plan deduction allocable to the self-employed individual. Sole proprietors cannot receive W-2 wages from themselves.
9A partnership maintains a 401(k) plan. A general partner's plan compensation is calculated based on which figure?
A.The partner's earned income computed from K-1 self-employment earnings, reduced by ½ SE tax and the partner's allocable plan contribution
B.The partner's draw amounts received during the plan year
C.The partner's W-2 wages (partners receive guaranteed-payment W-2s)
D.The partner's share of partnership gross receipts
Explanation: Partners are self-employed under §401(c). Their plan compensation is earned income from the partnership (K-1, line 14a, reduced by §179 expenses, unreimbursed partnership expenses, and the deductible portion of SE tax and the partner's own plan contribution). Draws are distributions of capital, not compensation.
10An owner of an S corporation receives both W-2 wages and pass-through K-1 income. Which amount is plan compensation under §415?
A.Only the W-2 wages (Box 1 or Box 5, per plan definition); K-1 distributions are not compensation for plan purposes
B.The combined total of W-2 wages and K-1 pass-through income
C.Only K-1 pass-through earnings
D.W-2 wages plus shareholder distributions in excess of basis
Explanation: S corporation pass-through earnings are not §415 compensation because S-corp shareholders are not self-employed. Only W-2 wages constitute plan compensation. This is a major contrast with partnerships, where K-1 self-employment earnings ARE compensation.

About the QKC Exam

The Qualified 401(k) Consultant (QKC) credential from ASPPA is the next step after the QKA, designed for retirement plan professionals who consult on complex 401(k) plan design, controlled-group and ASG analysis, advanced nondiscrimination testing, ESOPs, fiduciary responsibility, prohibited transactions, and SECURE 2.0 compliance. Candidates must already hold the QKA credential to sit for the QKC exam.

Questions

55 scored questions

Time Limit

2.5 hours

Passing Score

70%

Exam Fee

$455 (standalone) / $895 (bundle) (American Retirement Association (ASPPA))

QKC Exam Content Outline

13%

Controlled Groups & Affiliated Service Groups

Parent-subsidiary and brother-sister controlled groups, §1563 attribution and spousal exception, A-Org and B-Org ASGs under §414(m), management-function groups, QSLOBs, permissive aggregation, and §410(b)(6)(C) transition relief

13%

Nondiscrimination

ADP/ACP testing and corrections, traditional safe harbor and QACA, cross-testing minimum gateway, permitted disparity, top-heavy minimums, SECURE 2.0 mandatory auto-enrollment, Roth catch-up for high earners (§603), and student loan match (§110)

13%

Employee Stock Ownership Plans (ESOPs)

Leveraged vs non-leveraged ESOPs, §4975(d)(3) exempt loans, §1042 rollover and QRP, S-ESOP §409(p) disqualified-person rules, §401(a)(28) diversification, §404(k) dividend deduction, repurchase obligations, KSOPs, and §415(c)(6)

13%

Prohibited Transactions

ERISA §406(a) per se PTs, §406(b) self-dealing, ERISA §3(14) party-in-interest, statutory exemptions (§408(b)(1) participant loans, §408(b)(2) service providers), PTE 2020-02, EPCRS SCP/VCP/Audit CAP, VFCP, and §4975 excise taxes

11%

Average Benefit Test & Special Rules

§410(b) ratio percentage test, average benefits test (nondiscriminatory classification + ABP), reasonable classifications, NHCE concentration safe/unsafe harbors, statutory exclusions, and the all-qualified-plans aggregation for ABP

7%

Leased Employees

IRC §414(n) definition (substantially full-time, one-year, primary direction or control), §414(n)(5) safe harbor (10% MPP, immediate vesting, 20% NHCE cap), common-law-employer treatment for payroll, and plan exclusion by name with coverage testing impact

7%

Other Employer Situations

Sole proprietor earned income under §401(c), partner K-1 self-employment earnings, S-corp W-2 vs K-1 distinction, 501(c)(3) and 403(b) coordination under §402(g), non-electing church plans under §414(e), governmental plans, and §415(c) annual additions

7%

Compensation

§415 compensation definition, post-severance pay 2.5-month window, severance exclusion, §414(s) safe-harbor definitions (§415, W-2 Box 1, §3401(a)) and nondiscriminatory compensation test, §401(a)(17) limit, and mid-year amendment mechanics

7%

Fiduciary Standards

ERISA §404(a) prudent expert rule, §3(21) functional fiduciary, §405 co-fiduciary liability, §404(c) participant direction relief, QDIA under §2550.404c-5, §3(38) investment manager, and §3(16) plan administrator

7%

Distributions Upon Death & Life Insurance

SECURE Act 10-year rule for non-EDB designated beneficiaries, eligible designated beneficiaries (spouse, minor child, disabled/chronically ill, <10 years younger), spousal rollover options, QJSA exemption for 401(k)/PSP, life-insurance incidental benefit rule (50%/25%), Table 2001 economic benefit, and SECURE 2.0 PLESA/emergency distribution

2%

ASPPA Code of Professional Conduct

Integrity, qualification standards, conflicts of interest disclosure (Precept 7), confidentiality, control of work product, professional courtesy, and cooperation with other professionals

How to Pass the QKC Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 55 questions
  • Time limit: 2.5 hours
  • Exam fee: $455 (standalone) / $895 (bundle)

Keys to Passing

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

QKC Study Tips from Top Performers

1Memorize the §1563 controlled-group thresholds (80% parent-subsidiary, 80% combined + 50% identical brother-sister) and the §414(m) A-Org/B-Org structure before exam day
2Drill the ADP/ACP correction methods: refund excess to HCEs (highest deferral $ first), QNEC/QMAC to NHCEs, recharacterization to catch-up, and the 2.5/6-month (§4979) excise tax trigger
3Master ESOP fundamentals: §4975(d)(3) exempt loan conditions, §1042 rollover/QRP window, §409(p) disqualified-person and nonallocation-year mechanics, and §401(a)(28) diversification
4Lock in the ERISA §406 prohibited-transaction framework: per se transactions, party-in-interest definition, §408 statutory exemptions (especially §408(b)(1) participant loans and §408(b)(2) service providers), and PTE 2020-02
5Know the SECURE 2.0 changes that matter for consultants: mandatory auto-enrollment for new plans (§101), Roth catch-up for $145K+ earners (§603), student loan match (§110), PLESA (§127), and EPCRS expansion (§305)

Frequently Asked Questions

What is the ASPPA QKC exam format?

QKC is a closed-book exam delivered through ASPPA's proctored online examination system. It consists of 55 multiple-choice questions with a 2.5-hour non-resumable time limit. A passing score of 70% is required. The exam is offered on demand once you are eligible.

What topics are covered on the QKC exam?

The QKC syllabus has 11 chapters: leased employees (7%), other employer situations (7%), controlled groups and affiliated service groups (13%), compensation (7%), the average benefits test and special rules (11%), nondiscrimination (13%), ESOPs (13%), fiduciary standards (7%), prohibited transactions (13%), distributions upon death and life insurance (7%), and the ASPPA Code of Professional Conduct.

How much does the QKC exam cost in 2026?

The standalone QKC exam fee is $455. ASPPA also offers an education + exam bundle for $895 that includes the study materials and one exam attempt. Fees are not refundable. Always confirm current pricing on the ASPPA website before registering.

What is the prerequisite for the QKC credential?

Candidates must already hold the ASPPA QKA (Qualified 401(k) Administrator) credential before they can sit for the QKC exam. QKC builds on the administrative foundation of QKA and tests consulting-level knowledge of plan design, advanced testing, fiduciary issues, ESOPs, and corrections.

How long should I study for QKC?

Most QKA-credentialed candidates plan 80 to 120 hours of QKC study over 8 to 14 weeks. The heaviest study time should go to the four 13% chapters (controlled groups/ASG, nondiscrimination, ESOPs, prohibited transactions). The 11% average benefits test chapter and 7% chapters round out the syllabus. ESOP and ASG topics tend to be the steepest learning curve for candidates from purely 401(k)-only backgrounds.

Is QKC closed book?

Yes. The QKC exam is closed book. No printed or digital reference materials are allowed during the exam. ASPPA's proctored online examination system monitors candidates throughout the 2.5-hour testing window. Candidates should plan to commit IRS limits, ERISA sections, and EPCRS correction methods to memory.

What career path follows the QKC credential?

QKC is the consulting-level credential in ASPPA's 401(k) track and a prerequisite for the Certified Pension Consultant (CPC) credential. Candidates who add the QPA (Qualified Pension Administrator) and CPC together complete the senior ASPPA designation set for retirement plan consulting professionals.