Enmgy Q-00002-14-s Series1 Admin-1 Cpe Hour For A Score Of At Least 70%

10 Questions | Total Attempts: 41

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Enmgy Q-00002-14-s Series1 Admin-1 Cpe Hour For A Score Of At Least 70%

JAN/FEB 2014 ADMINISTRATION & COMPLIANCE. Please indicate whether each of the following statements is TRUE or FALSE


Questions and Answers
  • 1. 
    When a plan sponsor does not make timely ADP test corrections by refunding excess contributions to HCEs, late correction can be done using the one-to-one correction method or pro-rata QNECs.
    • A. 

      True

    • B. 

      False

  • 2. 
    When a plan sponsor still needs to correct a failed ADP test from a 2012 calendar plan year, SCP self-correction is still an option since the 2-year self-correction window runs from January 1, 2014 to December 31, 2015.
    • A. 

      True

    • B. 

      False

  • 3. 
    When a late ADP test correction is being done after the normal 12-month correction period, the otherwise excludable option or disaggregation rules cannot be utilized when determining the extent of corrective actions that will be necessary.  
    • A. 

      True

    • B. 

      False

  • 4. 
    When a late ADP test correction is being made using QNECs during the self-correction period, Rev. Proc. 2013-12 indicates that QNECs may be allocated using a Targeted QNEC allocation method.
    • A. 

      True

    • B. 

      False

  • 5. 
    The VCP formal correction process should always be used as the approach for correcting non-amender defects
    • A. 

      True

    • B. 

      False

  • 6. 
    The VCP formal correction process should be used for the correction of operational defects when the timing of the operational defects falls outside of the 2-year window period permitted for self-correction.  
    • A. 

      True

    • B. 

      False

  • 7. 
    When making a formal VCP submission to the IRS, if advanced corrective actions were taken before the IRS issues a Compliance Statement, those actions may have to be undone if the IRS does not approve the proposed corrective actions.
    • A. 

      True

    • B. 

      False

  • 8. 
    The VCP formal submission should include a ‘proposed correction method’ and the plan sponsor should understand that this ‘proposed correction method’ is only viable if the IRS agrees to it  
    • A. 

      True

    • B. 

      False

  • 9. 
    The ‘missed deferral’ for an eligible HCE in a plan year when the NHCE ADP was 6.5% and the HCE ADP was 8.5% is equal to 8.5% times the participant's Compensation and the 'missed deferral opportunity' is equal to 50% of the 'missed deferral' amount.
    • A. 

      True

    • B. 

      False

  • 10. 
    When a plan sponsor has improperly excluded employees from receiving the right to make salary deferrals under a Safe Harbor 3% nonelective 401(k) Plan, the formula to determine the 'missed deferral opportunity' is equal to 3% times 50%, or 1.5% times the Compensation for the Plan Year.  
    • A. 

      True

    • B. 

      False

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