Enmgy Q-00094-16-o Series2 Docs - 1 Cpe Hour For A Score Of At Least 70%

10 Questions | Total Attempts: 35

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Enmgy Q-00094-16-o Series2 Docs - 1 Cpe Hour For A Score Of At Least 70%

MAR/APR 2016 - SERIES 2 2016DOCUMENTS & DISCLOSURESPlease indicate whether each of the following statements is TRUE or FALSE


Questions and Answers
  • 1. 
    IRS policy on retention of historical documents can require employers utilizing pre-approved documents to prove that they have at least two recent Plan documents and amendments associated with those two documents.
    • A. 

      True

    • B. 

      False

  • 2. 
    The April 30, 2016 deadline for pre-approved defined contribution plan adopters means that takeover plan documents requested from DC Plan sponsors should include a PPA restatement document and the prior EGTRRA-compliant document plus any amendments made to either of those two documents. 
    • A. 

      True

    • B. 

      False

  • 3. 
    Asking takeover clients to provide just their current Plan document is sufficient to prove qualified plan status to an IRS reviewer when a VCP submission is being done to correct a plan defect that cannot be self-corrected due to the 2-year time limit expiring.
    • A. 

      True

    • B. 

      False

  • 4. 
    Compliance amendments that must still be retained by a DC Plan sponsor include  the 415 final regulations amendment, the PPA good-faith amendment, the HEART Act amendment, and the WRERA amendment. 
    • A. 

      True

    • B. 

      False

  • 5. 
    According to IRS policy, only when an employer has obtained a personalized determination letter with respect to their specific retirement plan is there a “fresh-start” granted with respect to the maintenance of historical documents. 
    • A. 

      True

    • B. 

      False

  • 6. 
    The IRS has announced that they are ready to handle individual VCP submissions from employers who failed to meet the April 30, 2016, deadline for adopting a defined contribution plan restatement that complies with the Pension Protection Act and, if that is the only plan defect, the VCP user fee may be reduced by 50% during a 1-year window period. 
    • A. 

      True

    • B. 

      False

  • 7. 
    The IRS has announced a new Umbrella Closing Agreement Program for document sponsors who have somehow failed in getting their clients’ defined contribution Plan documents restated timely to comply with the Pension Protection Act and this new program requires a minimum of 20 plans to take full advantage of the $5,000 minimum fee. 
    • A. 

      True

    • B. 

      False

  • 8. 
    The maximum user fee under the Umbrella Closing Agreement Program is currently $50,000. 
    • A. 

      True

    • B. 

      False

  • 9. 
    In IRS Announcement 2016-16, the IRS withdrew their proposed regulations that would have jeopardized the qualification of employer plans utilizing the “each person is a group” plan design option in cross-tested defined contribution plans. 
    • A. 

      True

    • B. 

      False

  • 10. 
    The end result of IRS Announcement 2016-16 is that the “gateway test” will continue to be a barrier that employers must satisfy under Section 401(a)(4) nondiscrimination regulations and that offers a significant level of protection to nonhighly compensated employees. 
    • A. 

      True

    • B. 

      False

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