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Test your basic knowledge |
Retirement Plan Fundamentals
Start Test
Study First
Subject
:
Instructions:
Answer 38 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Annual testing of plan's activities to ensure nondiscrimination of non highly compensated employees.
Defined Benefit Plan
Testing
Vesting
Defined Benefit Plan
2. Have all the limits of a traditional 401(k) plan - but without the required ADP/ACP testing for non-discrimination.
Safe Harbor 401(k) Plan
Contribution
Plan Participant
Catch-up Contributions
3. IRC-specified maximum amount of employee salary that may finance contributions to a retirement plan in a pre-tax manner.
Elective Deferral Limit
Vesting
Required Minimum Distribution
Defined Contribution Plan
4. Amount of time the employee must work to earn a non-forfeitable right to the benefit accrued by the employee in the plan.
Vesting
Defined Benefit Plan
Safe Harbor 401(k) Plan
401(a)
5. The person who will benefit from the assets of the plan - once they retire. Usually the employees of the plan sponsor.
Forfeiture
Distribution
1099
Plan Participant
6. The agreement between the Plan Sponsor and the Plan Provider.
Required Minimum Distribution
Elective Deferral Limit
Contract
Forfeiture
7. The agreement between the Plan Sponsor and the Plan Provider.
Required Minimum Distribution
Elective Deferral Limit
Plan Participant
Contract
8. Deposit of assets into the retirement plan - usually by a participant or sponsor.
Defined Benefit Plan
Contract
Contribution
Plan Participant
9. Type of legal entity that is for-profit - private.
Elective Deferral Limit
401(a)
Contribution
Testing
10. Legal entity that is a traditional non-profit organization.
403(b)
Plan Participant
Contract
Elective Deferral Limit
11. Legal entity that is a traditional non-profit organization.
401(a)
Testing
Elective Deferral Limit
403(b)
12. Amount of time the employee must work to earn a non-forfeitable right to the benefit accrued by the employee in the plan.
Distribution
Hardship Distribution
Vesting
Defined Benefit Plan
13. Distribution of plan assets to participant allowed under unusual circumstances such as health issue - death in family - college education funding need - loss of employment - etc.
Hardship Distribution
Distribution
Contract
Catch-up Contributions
14. Retirement plan that stipulates the amount put IN to the plan - but not the amount that the participant will ultimately receive. Usually funded by participant and/or sponsor of plan. Examples: 401k - IRA
Required Minimum Distribution
Plan Sponsor
Elective Deferral Limit
Defined Contribution Plan
15. Retirement plan that stipulates the amount the participant will RECEIVE from the plan - but not the amount that will be contributed to the plan. Usually funded by the sponsor. Example: traditional pension plan
Defined Benefit Plan
Defined Contribution Plan
Distribution
Catch-up Contributions
16. IRS form to report income other than wages.
Plan Sponsor
Testing
Contract
1099
17. IRC-specified regulated minimum value of distributions to participants at certain age.
Elective Deferral Limit
Hardship Distribution
Required Minimum Distribution
Catch-up Contributions
18. Pay-out of funds from a retirement plan to a participant.
Defined Benefit Plan
Contribution
457(b)
Distribution
19. Have all the limits of a traditional 401(k) plan - but without the required ADP/ACP testing for non-discrimination.
Safe Harbor 401(k) Plan
Testing
Distribution
Distribution
20. IRS form to report income other than wages.
1099
Defined Benefit Plan
Required Minimum Distribution
Testing
21. Deposit of assets into the retirement plan - usually by a participant or sponsor.
Forfeiture
Forfeiture
Distribution
Contribution
22. Pay-out of funds from a retirement plan to a participant.
Contribution
Hardship Distribution
Distribution
Safe Harbor 401(k) Plan
23. Provisions in the regulation that allow older workers to contribute more deferred income to their retirement plan.
Catch-up Contributions
Plan Sponsor
Defined Contribution Plan
Contribution
24. Retirement plan that stipulates the amount put IN to the plan - but not the amount that the participant will ultimately receive. Usually funded by participant and/or sponsor of plan. Examples: 401k - IRA
403(b)
Catch-up Contributions
Plan Participant
Defined Contribution Plan
25. Legtal entity that includes state - local - and municipal government bodies.
Hardship Distribution
Vesting
Defined Contribution Plan
457(b)
26. IRC-specified regulated minimum value of distributions to participants at certain age.
Defined Contribution Plan
Required Minimum Distribution
Forfeiture
Contract
27. IRC-specified maximum amount of employee salary that may finance contributions to a retirement plan in a pre-tax manner.
1099
Plan Participant
Contribution
Elective Deferral Limit
28. Provisions in the regulation that allow older workers to contribute more deferred income to their retirement plan.
Defined Benefit Plan
Hardship Distribution
Vesting
Catch-up Contributions
29. Non-vested portion of sponsor contributions to participant's retirement funds.
Forfeiture
Vesting
Plan Sponsor
Distribution
30. Retirement plan that stipulates the amount the participant will RECEIVE from the plan - but not the amount that will be contributed to the plan. Usually funded by the sponsor. Example: traditional pension plan
Plan Sponsor
Required Minimum Distribution
Defined Benefit Plan
Hardship Distribution
31. Distribution of plan assets to participant allowed under unusual circumstances such as health issue - death in family - college education funding need - loss of employment - etc.
457(b)
Hardship Distribution
Plan Sponsor
Testing
32. Annual testing of plan's activities to ensure nondiscrimination of non highly compensated employees.
Testing
Contract
Contract
1099
33. Legal entity that establishes the retirement plan for participants. Retirement plan sponsors are usually the employer of the participants.
Defined Contribution Plan
403(b)
Plan Sponsor
401(a)
34. Legal entity that establishes the retirement plan for participants. Retirement plan sponsors are usually the employer of the participants.
Forfeiture
Contract
Distribution
Plan Sponsor
35. Type of legal entity that is for-profit - private.
401(a)
Catch-up Contributions
Safe Harbor 401(k) Plan
Forfeiture
36. Legtal entity that includes state - local - and municipal government bodies.
457(b)
401(a)
Contract
Hardship Distribution
37. Non-vested portion of sponsor contributions to participant's retirement funds.
Contract
Forfeiture
Distribution
401(a)
38. The person who will benefit from the assets of the plan - once they retire. Usually the employees of the plan sponsor.
Plan Participant
Elective Deferral Limit
Catch-up Contributions
403(b)