Enmgy Q-00056-15-o Series1 Admin - 1 Cpe Hour For A Score Of At Least 70%

10 Questions | Total Attempts: 50

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Company Quizzes & Trivia

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


Questions and Answers
  • 1. 
    The 402(g) limit that sets the maximum annual deferral amounts for an individual taxpayer is always based on the calendar year, regardless of the plan year.
    • A. 

      True

    • B. 

      False

  • 2. 
    Catchup contributions for participants who will be at least age 50 by the last day of the year can begin as of January 1st, regardless of when the participant's actual birthday occurs.
    • A. 

      True

    • B. 

      False

  • 3. 
    The 402(g) limit violations that occur are less likely to happen in an employer's, calendar plan year 401(k) than in an employer's 401(k) Plan that is operating on a fiscal plan year or in a scenario where the employee had participated in more than one salary deferral plan during the same calendar year.
    • A. 

      True

    • B. 

      False

  • 4. 
    When determining HCE status for a particular plan year, there is no way out of including "5% Owners" who own more than 5% of the company in either the current plan year or the lookback year from HCE status in the current plan year. 
    • A. 

      True

    • B. 

      False

  • 5. 
    Whether an ADP test is to be run using the current year method or the prior year method is determined by what the Plan document provisions are, as of the last day of the Plan Year that the ADP test applies to.
    • A. 

      True

    • B. 

      False

  • 6. 
    The "eligible employees" to be included in the ACP test may exclude those participants who were not covered due to a last day employment condition or a 1,000 Hours condition on the annual matching contribution allocations, if the Plan was able to satisfy the 410(b) coverage testing without covering those excluded employees.
    • A. 

      True

    • B. 

      False

  • 7. 
    Nearly every 401(k) Plan provides for the use of the current year testing method, with respect to the ACP testing, since a $0 discretionary match decision in a prior year could otherwise prevent HCEs from being able to receive any matching contribution allocations in the current plan year.
    • A. 

      True

    • B. 

      False

  • 8. 
    In some cases, it is possible to correct an excess contribution due to a failed ADP test by recharacterizing excess contributions as catchup contributions, if the only HCE required to take a refund distribution happened to be age 50 or older by the last day of that plan year and had not alread made salary deferrals at a level that would have used up the "catchup contribution limit."
    • A. 

      True

    • B. 

      False

  • 9. 
    The normal correction period for an ADP Test or an ACP test is the 12-month period following the last day of the plan year and refund distributions are always taxable to the affected HCEs in the tax year of receipt, even though there are delays that may cause the employer to become subject to reporting a 10% excise tax on a Form 5330.
    • A. 

      True

    • B. 

      False

  • 10. 
    The top-paid group election is a provision that may be found in some 401(k) Plan documents and it is applied only to the Compensation Test that is a part of the HCE determination, with respect to the lookback year.
    • A. 

      True

    • B. 

      False

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