Enmgy E-00059-15-o Series1 Ethics - 1 Cpe Hour For A Score Of At Least 70%

10 Questions | Total Attempts: 41

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Ethics Quizzes & Trivia

JAN/FEB 2015 - SERIES 1 2015ETHICS & PROFESSIONALISMPlease indicate whether each of the following statements is TRUE or FALSE


Questions and Answers
  • 1. 
    IRS regulations under 411(d)(6) added in-service distributions to the definition of optional forms of benefit and, in the final analysis, made in-service distribution provisions protected benefits that cannot be eliminated with respect to benefits that have already accrued.
    • A. 

      True

    • B. 

      False

  • 2. 
    IRS regulations under 411(d)(6) provide a caveat to exclude hardship distributions from being treated as protected benefits and, therefore, a Plan can be amended to eliminate hardship distribution provisions. 
    • A. 

      True

    • B. 

      False

  • 3. 
    Rev Proc 2005-66 on timing of amendments indicates that certain plan features can be implemented during a plan year as long as the employer adopts a formal amendment to add the features as Plan provisions no later than the last day of the Plan Year.
    • A. 

      True

    • B. 

      False

  • 4. 
    Rev. Proc. 2005-66 has been interpreted to mean that testing elections cannot be amended after the last day of the Plan Year as far as the top-paid group election for the HCE determination or the Current Year vs. Prior Year testing methods for the ADP and ACP Testing 
    • A. 

      True

    • B. 

      False

  • 5. 
    The guidance released by IRS regarding In-Plan Roth Conversions or Rollovers indicate that a 402(f) tax/rollover notice is not required for participants who opt to take advantage of an In-Plan rollover because monies are not actually distributed from the Plan to the participant. 
    • A. 

      True

    • B. 

      False

  • 6. 
    The IRS prohibition on mid-year amendments to a Safe Harbor 401(k) Plan is still an issue but there is some hope that Congressional action may change this. 
    • A. 

      True

    • B. 

      False

  • 7. 
    IRS Notice 2014-74 provided minor updates to the content of the safe harbor 402(f) tax/rollover notices effective as of January 1, 2015. 
    • A. 

      True

    • B. 

      False

  • 8. 
    The IRC 412(d)(2) amendment rule for defined benefit pension plan sponsors to be able to adopt liberalizing plan amendments within the 2-1/2 month period following each plan year and make the effective date of such amendments retroactive to the first day of the prior plan year does not have any application whatsoever to defined contribution plan sponsors and, therefore, defined contribution plan sponsors cannot make retroactive amendments using this 2-1/2 month timing parameter. 
    • A. 

      True

    • B. 

      False

  • 9. 
    Retroactive amendments adopted after a plan year end are generally not permitted for defined contribution plans with there being just a few exceptions; two of these exceptions are 11(g) corrective amendments to fix failures of 410(b) or 401(a)(4} nondiscrimination testing 
    • A. 

      True

    • B. 

      False

  • 10. 
    A reformative amendment is a retroactive amendment that can be done under EPCRS to correlate a Plan document with the way plan operations have been handled, but the parameters for a reformative amendment require that the amendment primarily benefits nonhighly compensated employees and there must be a submission of the amendment under either VCP or the 5300/5307 determination letter application process. 
    • A. 

      True

    • B. 

      False