Test Your Knowledge About Retirement Plan Compliance! Trivia Quiz

Explanation
The given answer is "Yes". This implies that the person has indeed identified the fiduciaries to the plan. Fiduciaries are individuals or entities who have a legal and ethical duty to act in the best interest of another party, in this case, the plan. By answering "Yes", it suggests that the person has successfully identified these fiduciaries, ensuring that the plan's interests are protected.

Explanation
The correct answer is "Yes" because it indicates that the plan does have a way to independently review the investment choices on a regular basis. This implies that there is a process in place to assess and evaluate the investment options available in the plan, ensuring that they are periodically reviewed and potentially updated if necessary. This is important for maintaining the quality and suitability of the investment choices offered to plan participants.

Explanation
The answer is "Yes" because it indicates that all costs of the plan have been documented. This implies that there is a record or documentation of every expense or expenditure related to the plan. It suggests that there is clarity and transparency regarding the financial aspects of the plan, which is important for budgeting, tracking expenses, and ensuring accountability.

Explanation
The fiduciaries have been educated on their responsibilities. This implies that they have received the necessary information and training regarding their duties and obligations as fiduciaries. They are likely to be aware of the legal and ethical standards they must adhere to in managing assets and making decisions on behalf of others. This education ensures that they are equipped to fulfill their fiduciary duties effectively and responsibly.

Explanation
There is a "Retirement Committee" in place to oversee the plan. This suggests that there is a specific group or committee responsible for managing and monitoring the retirement plan. They are likely involved in making decisions, setting policies, and ensuring compliance with regulations related to retirement benefits.

Explanation
The explanation for the given answer "Yes" is that both the Department of Labor and IRS require documented activities for plan decisions. This implies that there is a documentation process in place for each plan decision. Without proper documentation, the activities may not be recognized by these authorities.

Explanation
The given answer is "Yes" because an "Investment Policy Statement" is a document that outlines an individual's or organization's investment goals, objectives, risk tolerance, and strategies. It serves as a guideline for making investment decisions and helps to ensure that investments align with the overall financial plan. Having an Investment Policy Statement is important as it provides clarity and discipline in managing investments and helps to minimize emotional and impulsive investment decisions.

Explanation
The given answer "Yes" indicates that the person has identified goals to make a quality plan for the employees. This suggests that they have set specific objectives or targets in order to develop a plan that ensures the employees' work meets certain quality standards. By having identified goals, the person is likely to have a clear direction and focus when creating the quality plan, which can ultimately lead to improved performance and outcomes for the employees.

Explanation
The total number of investment choices under the plan is less than 20. This means that there are fewer than 20 options available for investment.

Explanation
The last time a fund change occurred in the plan investment choices was under 6 months ago. This means that within the past 6 months, there was a change made to the available funds for investment in the plan.

Explanation
The correct answer is "Within the last 3 years". This means that the costs of the plan were reviewed at some point in the past three years to determine if they were reasonable. It suggests that the organization is actively monitoring and assessing the costs of the plan to ensure they remain reasonable and potentially make adjustments if necessary.

Explanation
The given answer "Yes" suggests that the person is confident that the required plan disclosures are being distributed to participants. This implies that the necessary information regarding the plan is being shared with the participants as per the regulatory requirements.