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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. Legal entity that is a traditional non-profit organization.
Required Minimum Distribution
403(b)
Plan Sponsor
Forfeiture
2. Legal entity that establishes the retirement plan for participants. Retirement plan sponsors are usually the employer of the participants.
Plan Sponsor
Elective Deferral Limit
Plan Participant
Catch-up Contributions
3. IRS form to report income other than wages.
Hardship Distribution
Contract
1099
Elective Deferral Limit
4. The person who will benefit from the assets of the plan - once they retire. Usually the employees of the plan sponsor.
Plan Participant
Vesting
457(b)
Vesting
5. IRC-specified regulated minimum value of distributions to participants at certain age.
Required Minimum Distribution
Contract
403(b)
1099
6. 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
Forfeiture
Defined Benefit Plan
401(a)
Vesting
7. Provisions in the regulation that allow older workers to contribute more deferred income to their retirement plan.
Catch-up Contributions
Testing
Required Minimum Distribution
403(b)
8. 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
Testing
Defined Contribution Plan
Contract
Distribution
9. Legtal entity that includes state - local - and municipal government bodies.
457(b)
Contract
403(b)
Forfeiture
10. IRC-specified maximum amount of employee salary that may finance contributions to a retirement plan in a pre-tax manner.
Elective Deferral Limit
Defined Benefit Plan
Defined Benefit Plan
Forfeiture
11. Deposit of assets into the retirement plan - usually by a participant or sponsor.
Defined Benefit Plan
401(a)
Contribution
Safe Harbor 401(k) Plan
12. Have all the limits of a traditional 401(k) plan - but without the required ADP/ACP testing for non-discrimination.
403(b)
401(a)
Safe Harbor 401(k) Plan
Distribution
13. Deposit of assets into the retirement plan - usually by a participant or sponsor.
Plan Participant
Hardship Distribution
Contribution
Distribution
14. The person who will benefit from the assets of the plan - once they retire. Usually the employees of the plan sponsor.
Plan Sponsor
Plan Sponsor
Plan Participant
403(b)
15. Non-vested portion of sponsor contributions to participant's retirement funds.
Defined Benefit Plan
Testing
403(b)
Forfeiture
16. Legtal entity that includes state - local - and municipal government bodies.
457(b)
Safe Harbor 401(k) Plan
Plan Sponsor
Hardship Distribution
17. Type of legal entity that is for-profit - private.
Elective Deferral Limit
Elective Deferral Limit
401(a)
Vesting
18. Annual testing of plan's activities to ensure nondiscrimination of non highly compensated employees.
Defined Benefit Plan
Defined Contribution Plan
Safe Harbor 401(k) Plan
Testing
19. IRS form to report income other than wages.
Forfeiture
1099
Catch-up Contributions
Defined Contribution Plan
20. Type of legal entity that is for-profit - private.
401(a)
Testing
Contract
403(b)
21. The agreement between the Plan Sponsor and the Plan Provider.
403(b)
403(b)
Forfeiture
Contract
22. 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
Defined Contribution Plan
1099
Contribution
23. Non-vested portion of sponsor contributions to participant's retirement funds.
Plan Participant
Forfeiture
Contribution
Defined Contribution Plan
24. 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
Plan Sponsor
Vesting
401(a)
25. Amount of time the employee must work to earn a non-forfeitable right to the benefit accrued by the employee in the plan.
457(b)
Distribution
Elective Deferral Limit
Vesting
26. Pay-out of funds from a retirement plan to a participant.
Testing
Defined Benefit Plan
Distribution
Elective Deferral Limit
27. Legal entity that establishes the retirement plan for participants. Retirement plan sponsors are usually the employer of the participants.
Distribution
Contract
Contract
Plan Sponsor
28. Have all the limits of a traditional 401(k) plan - but without the required ADP/ACP testing for non-discrimination.
Vesting
Hardship Distribution
401(a)
Safe Harbor 401(k) Plan
29. Amount of time the employee must work to earn a non-forfeitable right to the benefit accrued by the employee in the plan.
Defined Benefit Plan
Forfeiture
Vesting
Forfeiture
30. 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
Contribution
Defined Contribution Plan
Forfeiture
Contribution
31. Annual testing of plan's activities to ensure nondiscrimination of non highly compensated employees.
Hardship Distribution
Defined Contribution Plan
Testing
Contribution
32. The agreement between the Plan Sponsor and the Plan Provider.
Contribution
Contract
403(b)
1099
33. Pay-out of funds from a retirement plan to a participant.
Testing
Vesting
Distribution
Plan Sponsor
34. IRC-specified maximum amount of employee salary that may finance contributions to a retirement plan in a pre-tax manner.
401(a)
Elective Deferral Limit
403(b)
Testing
35. Provisions in the regulation that allow older workers to contribute more deferred income to their retirement plan.
Catch-up Contributions
Required Minimum Distribution
Distribution
Safe Harbor 401(k) Plan
36. Legal entity that is a traditional non-profit organization.
403(b)
Contribution
Plan Sponsor
Required Minimum Distribution
37. 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.
Vesting
457(b)
Hardship Distribution
Safe Harbor 401(k) Plan
38. IRC-specified regulated minimum value of distributions to participants at certain age.
Plan Sponsor
Contribution
Required Minimum Distribution
Forfeiture