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Exam Review

Key Facts: QKS Exam

75

Exam Questions

ASPPA QKS Candidate Handbook

150 min

Time Limit

ASPPA QKS Candidate Handbook

Not published

Passing Score

ASPPA QKS Candidate Handbook

$455

Standalone Exam Fee

ASPPA QKS Candidate Handbook

14

Curriculum Modules

ASPPA QKS learning program

The ASPPA QKS exam is an online proctored closed-book test with 75 multiple-choice questions and a 2.5-hour time limit. The standalone exam fee is $455 ($895 with the 14-module education bundle). Earning the credential requires 3 years of retirement plan administration experience or RPF completion, passing the exam, applying for the credential, and following the Code of Conduct. The 14 curriculum areas focus on defined contribution plan design, fiduciary standards, client consulting, and sales compliance under ERISA and the Internal Revenue Code. OpenExamPrep provides 66 independent English-language practice questions for studying QKS topics.

Sample QKS Practice Questions

Try these sample questions to review concepts for the QKS exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 66+ question experience with AI tutoring.

1Which of the following describes a key distinction in employer eligibility between a traditional 401(k) plan and a 403(b) tax-sheltered annuity plan?
A.A 403(b) plan may only be established by Section 501(c)(3) tax-exempt organizations and public educational institutions, whereas a 401(k) plan can be adopted by for-profit and non-profit employers alike
B.A 401(k) plan can only be sponsored by publicly traded corporations, whereas a 403(b) plan is open to all private business entities
C.A 403(b) plan is restricted to governmental entities and labor unions, while private tax-exempt entities must sponsor a 401(k) plan
D.Both 401(k) and 403(b) plans share identical employer eligibility criteria under the Internal Revenue Code
Explanation: Under IRC §403(b), eligibility to sponsor a 403(b) plan is limited to organizations exempt from federal income tax under IRC §501(c)(3) and public school systems (including state colleges and universities). In contrast, IRC §401(k) plans can be adopted by virtually any employer, including for-profit corporations, partnerships, sole proprietorships, and tax-exempt non-profit organizations.
2A small business owner with 60 employees wants to establish a retirement plan with minimal administrative overhead. When comparing a SIMPLE IRA plan to a 401(k) plan, which feature is unique to the SIMPLE IRA?
A.The employer is prohibited from maintaining any other qualified retirement plan for the same calendar year, and all contributions are 100% immediately vested
B.Employees can borrow up to 50% of their vested balance through participant plan loans
C.The plan allows discretionary profit-sharing contributions allocated via permitted disparity
D.The plan requires annual Form 5500 filings and independent auditor reports once participant count exceeds 50
Explanation: Under IRC §408(p), an employer sponsoring a SIMPLE IRA generally cannot maintain any other qualified retirement plan covering employees eligible for the SIMPLE IRA in the same calendar year (with narrow transition relief). Furthermore, all employer contributions (whether the 3% match or 2% nonelective) must be 100% immediately vested upon contribution. Participant loans are strictly prohibited in SIMPLE IRAs, and Form 5500 is not required.
3A consulting client asks about the structural differences between a Simplified Employee Pension (SEP) IRA and a standard 401(k) plan. Which statement correctly distinguishes a SEP IRA?
A.A SEP IRA is funded solely by employer discretionary contributions with immediate 100% vesting, and does not permit employee salary deferrals
B.A SEP IRA requires employees to make mandatory payroll deductions of at least 3% of compensation
C.A SEP IRA requires annual ADP and ACP compliance testing to ensure contributions do not discriminate in favor of highly compensated employees
D.A SEP IRA allows employer contributions to be subject to a 3-year cliff vesting schedule
Explanation: Under IRC §408(k), modern SEP IRA plans are funded entirely through employer discretionary contributions; new salary reduction SEPs (SARSEPs) have been prohibited since 1997. All contributions made to a participant's SEP IRA are 100% immediately vested. Because there are no employee deferrals or matching contributions, SEP IRAs are not subject to ADP/ACP nondiscrimination testing.
4How do defined benefit (DB) pension plans and defined contribution (DC) plans fundamentally differ regarding investment risk and retirement benefit determination?
A.In a DB plan, the employer bears investment risk and promises a determinable monthly benefit at retirement; in a DC plan, the employee bears investment risk and the ultimate benefit depends on account accumulation
B.In a DB plan, the employee directs investment of plan assets and bears market volatility risk; in a DC plan, the employer guarantees a fixed rate of return
C.Both DB and DC plans require the employer to guarantee a minimum monthly retirement benefit regardless of underlying asset performance
D.In a DC plan, the Pension Benefit Guaranty Corporation (PBGC) insures participant account balances up to statutory maximums
Explanation: In a defined benefit plan, the plan specifies a formula (often based on compensation and years of service) promising a determinable monthly benefit at normal retirement age; the employer is responsible for funding this promise and bears all investment and longevity risk. In a defined contribution plan (such as a 401(k)), the plan specifies contribution formulas, but the ultimate benefit depends entirely on participant contributions, employer contributions, and net investment returns, placing investment risk on the participant.
5What is the primary legal and fiduciary difference between a governmental Section 457(b) plan and a tax-exempt (non-governmental) Section 457(b) plan?
A.Governmental 457(b) plan assets must be held in trust for the exclusive benefit of participants, whereas tax-exempt 457(b) plan assets must remain the employer's unfunded general assets subject to general creditors
B.Tax-exempt 457(b) plan assets are fully insured by the PBGC, while governmental 457(b) assets are unprotected against municipal insolvency
C.Governmental 457(b) plans are strictly limited to executive select management groups, while tax-exempt 457(b) plans must cover all rank-and-file workers
D.Tax-exempt 457(b) plans permit unlimited participant loans, while governmental 457(b) plans strictly prohibit participant loans
Explanation: Under IRC §457(g), all assets and income of a governmental 457(b) plan must be held in trust, custodial account, or annuity contract for the exclusive benefit of participants and beneficiaries. In contrast, under IRC §457(b)(6), a non-governmental tax-exempt 457(b) plan must remain unfunded; its assets remain solely the property of the sponsoring employer, subject to the claims of the employer's general creditors until paid to participants.
6A high-income medical practice owner wants to maximize tax deductions far beyond the 401(k) annual additions limit. Which retirement arrangement structure is commonly combined with a Safe Harbor 401(k) profit-sharing plan to achieve this goal?
A.A cash balance defined benefit pension plan, which can provide additional actuarially determined benefits alongside a 401(k) profit-sharing plan
B.A SIMPLE 401(k) plan with an elective deferral true-up
C.An unfunded Section 457(f) deferred compensation plan for the private medical corporation
D.A Payroll Deduction IRA plan with employer matching credits
Explanation: A cash balance plan is a defined benefit plan that expresses promised benefits as a hypothetical account with pay and interest credits. Employers can generally contribute and deduct more under a defined benefit plan than under a defined contribution plan, with funding determined by an actuary. A cash balance plan can be combined with a 401(k) profit-sharing plan, but applicable coverage and nondiscrimination requirements must still be met. Safe harbor 401(k) status alone does not establish that a combined plan satisfies any required minimum allocation gateway.
7An employee age 52 separates from service and receives a lump-sum distribution from their retirement plan. Under IRC §72(t), how does the 10% early withdrawal tax penalty apply when comparing a distribution from a 401(k) plan to one from a governmental 457(b) plan?
A.The 401(k) distribution is subject to the 10% early withdrawal penalty unless an exception applies, whereas governmental 457(b) distributions are exempt from the 10% penalty regardless of age upon severance
B.Both distributions are automatically exempt from the 10% penalty because the employee has separated from service
C.Both distributions are subject to an unavoidable 20% penalty unless rolled over into a Roth IRA
D.The governmental 457(b) distribution triggers a 10% penalty, while the 401(k) distribution is exempt after age 50
Explanation: Distributions from qualified defined contribution plans like 401(k)s prior to age 59.5 are generally subject to a 10% early withdrawal tax under IRC §72(t) unless a statutory exception applies (such as separation from service in or after the year attaining age 55). In contrast, IRC §72(t) does not apply to distributions from governmental 457(b) plans following severance from employment, meaning no 10% penalty is assessed regardless of the participant's age (unless the distributed funds originated from a rollover from another qualified plan type).
8Under IRC §401(a), which foundational legal requirement must be satisfied for a 401(k) plan to obtain and maintain its tax-qualified status?
A.The plan must be a definite written program established and maintained by an employer for the exclusive benefit of employees and their beneficiaries
B.The plan must guarantee an annual rate of return tied to the Consumer Price Index
C.The plan must offer company stock as an investment alternative to all participants
D.The plan document must be re-drafted and filed with the Department of Labor annually
Explanation: Treas. Reg. §1.401-1(a)(2) and IRC §401(a) require that a qualified retirement plan be a definite written program established and maintained by an employer for the exclusive benefit of its employees and their beneficiaries. The plan terms must be set forth in writing and communicated to employees.
9What is the primary structural difference between an individually designed qualified plan document and an IRS pre-approved plan document?
A.A pre-approved plan uses provider-drafted language reviewed in an IRS opinion letter, whereas an individually designed plan is drafted to meet a particular employer's needs
B.Individually designed plans are completely exempt from ERISA Title I fiduciary requirements
C.Pre-approved plans cannot be modified through elective options in an adoption agreement
D.Individually designed plans are prohibited from utilizing Third-Party Administrators
Explanation: A pre-approved plan provider obtains an IRS opinion letter on its plan document. The plan may use a basic plan document with an adoption agreement or a single-document format containing the employer's choices. An individually designed plan is drafted for an employer's particular needs rather than adopted from the provider's pre-approved document.
10Under ERISA §403(a), what is the legal requirement regarding the custody and holding of qualified retirement plan assets?
A.All plan assets must be held in trust by one or more trustees named in the trust instrument or appointed by a named fiduciary
B.Plan assets may remain co-mingled in the employer's general corporate operating bank account until distributed
C.The plan administrator may hold assets in its own operating account if an independent audit is performed annually
D.Only a trustee appointed by the Department of Labor may hold the assets of a qualified retirement plan
Explanation: ERISA §403(a) requires that all assets of an employee benefit plan be held in trust by one or more trustees. The trustees must either be named in the trust instrument or plan document or appointed by a named fiduciary. Once accepted, the trustees have authority to manage and control plan assets, unless they are directed trustees subject to the direction of a named fiduciary.

About the QKS Exam

The Qualified 401(k) Specialist (QKS) credential from the American Society of Pension Professionals & Actuaries (ASPPA) is designed for client-facing retirement plan professionals, including wholesalers, sales representatives, and relationship managers. The curriculum provides comprehensive knowledge of 401(k) plan design, qualification requirements, service provider models, MEPs/PEPs, eligibility, vesting, contribution types, compliance testing, distributions, loans, fiduciary standards under ERISA, government filings, plan transitions, and ethical sales practices.

Exam sponsor: American Society of Pension Professionals & Actuaries (ASPPA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

75 questions

Time Limit

2.5 hours

Passing Score

Not published in current QKS handbook

Exam / Certification Fees

$455 (standalone) / $895 (bundle)

Exam sponsor website

Reported exam pass rate: Not published. ASPPA does not publish official candidate pass rates Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

6%

Plan Types

Defined contribution and defined benefit plans, small-employer retirement arrangements, and 403(b) plans.

5%

Plan Qualifications

Government oversight, ERISA, disqualification consequences, and types of plan documents.

5%

Service Providers, MEPs, and PEPs

Service-provider roles, bundled and unbundled models, Multiple Employer Plans, and Pooled Employer Plans.

11%

Eligibility and Vesting

Age and service conditions, entry dates, class exclusions, vesting, and forfeitures.

12%

Contributions

Employee and employer contributions, compensation, contribution timing, and contribution and deduction limits.

11%

Annual Administration and Nondiscrimination

Annual administration, top-heavy requirements, HCEs, ADP/ACP tests and corrections, coverage, and nondiscrimination.

11%

Distributions and Loans

Distribution forms, withholding, Roth and pre-tax treatment, hardship withdrawals, RMDs, QDROs, Roth conversions, and loans.

6%

Fiduciary Responsibility

Named fiduciaries, fiduciary standards, plan fees and expenses, and VFCP versus EPCRS.

9%

Reporting and Disclosures

ERISA reporting, Form 5500 selection, DFVCP, plan audits, and participant notices and disclosures.

6%

Adopting Plans and Tax Credits

Plan adoption timing and steps, new-plan tax credits, and retroactive contributions.

6%

Plan Design

Business structures and plan design considerations for small and mid-large businesses.

5%

Takeovers, Conversions, and Plan Terminations

Reasons to change providers, transition procedures, takeovers versus conversions, and plan termination.

4%

The Sales Process

Referral channels and identifying businesses that are candidates for new retirement plans.

3%

Ethics

ARA Code of Professional Conduct violations and responding to ethical dilemmas.

Preparing for the QKS Exam

What You Need to Know

  • Passing score: Not published in current QKS handbook
  • Exam length: 75 questions
  • Time limit: 2.5 hours
  • Exam / certification fees: $455 (standalone) / $895 (bundle) Official sources

Using Our Practice Resources

  • Work through all 66 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

QKS: Suggested Study Strategy

1Master the fundamental distinctions between 401(k), 403(b), 457(b), SIMPLE, and SEP plans regarding employer eligibility and withdrawal rules.
2Understand the mechanics of Safe Harbor 401(k) designs, including basic match (100% on first 3%, 50% on next 2%), 3% nonelective, and QACA auto-enrollment formulas.
3Know the distinct roles and fiduciary liability relief associated with ERISA §3(16) plan administrators, §3(21) investment advisors, and §3(38) discretionary investment managers.
4Review SECURE 2.0 key provisions including Long-Term Part-Time (LTPT) rules (2 consecutive years of 500+ hours), super catch-up limits, $7,000 cash-out threshold, and small business startup tax credits.
5Drill IRC §72(p) loan limits, including vested-balance caps, prior-12-month loan reductions and current outstanding balances, plus hardship withdrawal criteria.

Frequently Asked Questions

What is the ASPPA Qualified 401(k) Specialist (QKS) credential?

The Qualified 401(k) Specialist (QKS) is a professional designation conferred by the American Society of Pension Professionals & Actuaries (ASPPA), part of the American Retirement Association (ARA). It is specifically tailored for client-facing professionals—such as 401(k) sales representatives, wholesalers, relationship managers, and plan consultants—focusing on plan design, fiduciary governance, and client consultation rather than back-office recordkeeping.

What are the requirements to earn the QKS credential?

Candidates must have three years of retirement plan administration experience OR complete ASPPA's Retirement Plan Fundamentals (RPF) certificate course, pass the QKS exam, apply for the credential, and abide by the Code of Conduct. The QKS education modules and practice exam are optional preparation.

What is the format and duration of the QKS examination?

The QKS examination is a closed-book, online proctored test comprising 75 multiple-choice questions. Candidates are allotted 2.5 hours (150 minutes) to complete the exam. The current QKS handbook does not state a numerical passing score; confirm the current standard with ASPPA.

How much does the ASPPA QKS exam cost in 2026?

The standalone proctored exam fee is $455. ASPPA also offers a comprehensive QKS education bundle for $895, which includes the 14 online learning modules, downloadable study resources, practice quizzes, and one exam attempt.

How does QKS differ from ASPPA's QKA credential?

While the QKA (Qualified 401(k) Administrator) focuses deeply on technical plan administration, complex nondiscrimination calculations (ADP/ACP, coverage, general test), and annual government reporting across two separate examinations (QKA-1 and QKA-2), the QKS is a single-exam credential geared toward consultative plan design, client relationship management, service provider evaluation, and sales ethics.

What 2026 IRS contribution limits apply to the QKS exam?

Under IRS Notice 2025-67, the 2026 limits are: elective deferral limit under IRC §402(g) is $24,500; age 50+ catch-up is $8,000; SECURE 2.0 super catch-up for ages 60-63 is $11,250; annual additions limit under §415(c) is $72,000; annual compensation cap under §401(a)(17) is $360,000; and the HCE threshold under §414(q) is $160,000 (based on 2025 lookback). The mandatory cashout threshold is $7,000.