Enmgy Q-00095-16-o Series2 Distrib - 1 Cpe Hour For A Score Of At Least 70%

10 Questions | Total Attempts: 35

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Enmgy Q-00095-16-o Series2 Distrib - 1 Cpe Hour For A Score Of At Least 70%

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


Questions and Answers
  • 1. 
    Distribution records managed by Distribution Specialists are typically organized according to the calendar year in which they are processed, under a master Distribution folder.
    • A. 

      True

    • B. 

      False

  • 2. 
    To set distribution timing expectations and minimize lost participant issues, it is a Best Practice for Employers to provide terminating participants with an information sheet regarding retirement plan benefit timing and the importance of keeping contact information current – as part of an Exit Interview Process. 
    • A. 

      True

    • B. 

      False

  • 3. 
    The sooner contact is made after a plan participant terminates employment, the better the chances are that the last known address that the employer had record of will be a valid address to use when mailing retirement plan distribution paperwork.
    • A. 

      True

    • B. 

      False

  • 4. 
    Not all 401(k) plan distributions need to be delayed until after the close of the plan year when year-end administration is completed. 
    • A. 

      True

    • B. 

      False

  • 5. 
    Once distribution election forms are mailed to a participant who has terminated employment, pension law requires that the individual be given a 30-day review period to make decisions regarding the distribution options that are available. 
    • A. 

      True

    • B. 

      False

  • 6. 
    By including a 31-Day Response Required line in the heading of the communication to obtain signed distribution elections from a terminated plan participant, mandatory distributions such as autorollovers and/or cashouts can be made promptly by plan trustees. 
    • A. 

      True

    • B. 

      False

  • 7. 
    When a Plan is utilizing cashout provisions, it is important that mailing addresses are validated by using a paid locator service before sending any payout checks in the mail; otherwise uncashed checks can create a separate administrative problem. 
    • A. 

      True

    • B. 

      False

  • 8. 
    Terminated participants with outstanding participant loans may need special handling because they are often unresponsive to distribution paperwork mailings and may be thinking that they may not have to face the consequences of their outstanding loans if they simply ignore the messaging. 
    • A. 

      True

    • B. 

      False

  • 9. 
    TPA firms can encourage employers to set up contracts with autorollover service providers by determining which company they want to recommend to their clients and such service providers include:  Penchecks, Autorollovers.com, or Rolloversystems.com. 
    • A. 

      True

    • B. 

      False

  • 10. 
    One important step in the specialized processing of distributions is to have the plan trustees send in a verification soon after each distribution is processed, as opposed to waiting until after the end of the calendar to round up a list of distribution recipients for Form 1099-R preparation. 
    • A. 

      True

    • B. 

      False

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