Enmgy Q-00058-15-o Series1 Distrib - 1 Cpe Hour For A Score Of At Least 70%

10 Questions | Total Attempts: 58

SettingsSettingsSettings
Please wait...
Enmgy Q-00058-15-o Series1 Distrib - 1 Cpe Hour For A Score Of At Least 70%

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


Questions and Answers
  • 1. 
    There is a late filing penalty of $25 per day (per form) up to a maximum of $15,000, that the IRS may charge when Forms 1099-R are not filed timely.
    • A. 

      True

    • B. 

      False

  • 2. 
    TPA Firms should communicate clearly about their contractual services for the preparation of Forms 1099-R and the Form 945, for employers whose retirement plans are not on a daily valuation recordkeeping system and these services should be a standing arrangement specified in a Service Agreement or by an Employer authorization form.   
    • A. 

      True

    • B. 

      False

  • 3. 
    TPA firms wanting to better manage their plan distribution workflow should not wait until after a calendar year end to gather distribution reporting information from employers and plan trustees because there are ways to follow pro-active procedures throughout the year to maintain the information needed for the preparation of Forms 1099-R and the Form 945.
    • A. 

      True

    • B. 

      False

  • 4. 
    A reasonable response date to specify in communications for terminated plan participants to return signed distribution election forms may be any date in the range of 31 days to 45 days from the date the 402(f) tax/rollover notice is delivered to the distribution recipient. 
    • A. 

      True

    • B. 

      False

  • 5. 
    Lack of due diligence and follow-ups when a distribution is pending can easily cause the distribution issues to remain unresolved into the next year, especially when certain employers are put in the middle of handling communications with ex-employees. 
    • A. 

      True

    • B. 

      False

  • 6. 
    The most poorly managed plan distributions can result in the plan having to file a Form 8955-SSA due to extreme time lags in the workflow and processing of severance distributions. 
    • A. 

      True

    • B. 

      False

  • 7. 
    A Notice of Termination form can be made part of the employer’s responsibility to provide the TPA firm with the employee’s contact information, including the last known address of the employee; a personal e-mail address; name and phone number of beneficiary or nearest relative. 
    • A. 

      True

    • B. 

      False

  • 8. 
    For TPA firms who want to help employers/plan sponsors expedite the processing of severance distributions, Autorollover provisions should be included in every Plan document, to the fullest extent permitted by law (including vested benefit amounts of $1,000, or less).
    • A. 

      True

    • B. 

      False

  • 9. 
    Although Cashout provisions can still be included in a Plan document, they have proven ineffective because of employers not keeping careful track of their terminated employees current address and personal contact information and it is therefore advisable to replace Cashout provisions with Autorollover provisions for all vested benefit amounts of $5,000, or less. 
    • A. 

      True

    • B. 

      False

  • 10. 
    If a Plan document has expanded autorollover provisions to include vested benefit amounts of $1,000 or less, then terminated participants who do not return completed distribution paperwork after they are told (in writing) to respond within 31 days can have their vested benefits subjected to the autorollover rules, if the vested benefit amount is $5,000 or less.
    • A. 

      True

    • B. 

      False

Back to Top Back to top