Enmgy Q-00067-15-o Series3 Admin - 1 Cpe Hour For A Score Of At Least 70%

10 Questions | Total Attempts: 47

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Enmgy Q-00067-15-o Series3 Admin - 1 Cpe Hour For A Score Of At Least 70%

MAY/JUNE 2015 - SERIES 3 2015ADMIN & COMPLIANCEPlease indicate whether each of the following statements is TRUE or FALSE


Questions and Answers
  • 1. 
    The compensation limit under Code Section 401(a)(17) restricts the compensation used for the allocation of plan contributions in a defined contribution plan.
    • A. 

      True

    • B. 

      False

  • 2. 
    When there is a short plan year, the compensation limit under Code Section 401(a)(17) must be prorated by multiplying the  401(a)(17) dollar limit times a fraction with the numerator being the number of months in the short plan year and the denominator being 12. 
    • A. 

      True

    • B. 

      False

  • 3. 
    The 415(c) annual additions limitation for defined contribution plans is an individual limit equal to 100% of 415 compensation or the indexed dollar limit as of the plan year end.
    • A. 

      True

    • B. 

      False

  • 4. 
    The IRS recently indicated that the self correction period for excess annual additions has been changed to 2-1/2 months after the 415 limitation year ends. 
    • A. 

      True

    • B. 

      False

  • 5. 
    Elective deferrals and catchup contributions are not counted towards the 25% employer deduction limit or as annual additions. 
    • A. 

      True

    • B. 

      False

  • 6. 
    Once the EPCRS deadline for self-correction of excess annual additions has passed, the only route to voluntary correction under EPCRS is through a formal VCP application. 
    • A. 

      True

    • B. 

      False

  • 7. 
    In determining key employees under the 5% owner test or the 1% owner test, an individual has to be considered to have “more than 5% ownership in the company” or “more than 1% ownership in the company and annual compensation greater than $150,000.” 
    • A. 

      True

    • B. 

      False

  • 8. 
    When performing a top-heavy determination in the 5th year of a 401(k) plan, the calculation of the top-heavy ratio should be done by using the cash method of accounting, not including accrued contributions that have not been deposited as of the plan’s top-heavy determination date. 
    • A. 

      True

    • B. 

      False

  • 9. 
    When performing a top-heavy determination in the 5th year of a money purchase pension plan, the calculation of the top-heavy ratio should be done by using the accrual method of accounting, including accrued contributions that are required but have not been deposited as of the plan’s top-heavy determination date. 
    • A. 

      True

    • B. 

      False

  • 10. 
    When performing a top-heavy determination for the first year of a 401(k) plan and a money purchase pension plan, the contributions for the initial plan year must be accrued, except for any catchup contributions made to the 401(k) plan. 
    • A. 

      True

    • B. 

      False

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