Adoption Agreements (Small Market)
- 1.What is the last day rule?
- A.
None of the Above
- B.
An employee may contribute to the 401K up to their last day of employment
- C.
The employee must be employed on the last day of the plan year to share in the employer contribution
- D.
The employer contribution will be vested on the last day of the year
- E.
The employee need not be employed with the employer at the end of the year to share in the employer contribution
- 2.A plan can exclude bonus compensation on the standard adoption agreement 002
- A.
True
- B.
False
- 3.What are some of the options the Non-Standard Adoption Agreements 001 allow that the standard 002 does not? Check all that apply
- A.
A Last Day Rule
- B.
Cross Testing
- C.
Per Payroll NEC
- D.
Employee and Compensation Exclusions
- E.
Tiered Matching
- 4.In general, the main difference between a matching contribution and a NEC is that a matching contribution is given to all employees who have met eligibility regardless of participation while a NEC is only given to those that participate in the plan
- A.
True
- B.
False
- 5.The base plan document we are currently on is 06
- A.
True
- B.
False
- 6.How often do we have to restate our plan documents with the IRS?
- A.
Every 6 years
- B.
Every 2 years
- C.
Only when we or the IRS make significant changes
- D.
Never
- 7.If the plan has an IRS plan # of 002, what assumptions may be true? (Choose all that apply)
- A.
They may have another qualified plan out there
- B.
They are probably on their first plan reporting to the IRS
- C.
They may have terminated a prior 401k and started a new one
- D.
All of the above
- 8.AA 001 is the standard adoption agreement, 002 is the non-standard
- A.
True
- B.
False
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