Test your basic knowledge |

Retirement Plan Fundamentals

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. Deposit of assets into the retirement plan - usually by a participant or sponsor.






2. Legal entity that is a traditional non-profit organization.






3. Have all the limits of a traditional 401(k) plan - but without the required ADP/ACP testing for non-discrimination.






4. Deposit of assets into the retirement plan - usually by a participant or sponsor.






5. IRS form to report income other than wages.






6. Type of legal entity that is for-profit - private.






7. Non-vested portion of sponsor contributions to participant's retirement funds.






8. Provisions in the regulation that allow older workers to contribute more deferred income to their retirement plan.






9. The person who will benefit from the assets of the plan - once they retire. Usually the employees of the plan sponsor.






10. 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.






11. IRS form to report income other than wages.






12. Legal entity that establishes the retirement plan for participants. Retirement plan sponsors are usually the employer of the participants.






13. 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






14. Have all the limits of a traditional 401(k) plan - but without the required ADP/ACP testing for non-discrimination.






15. Legal entity that is a traditional non-profit organization.






16. IRC-specified regulated minimum value of distributions to participants at certain age.






17. IRC-specified maximum amount of employee salary that may finance contributions to a retirement plan in a pre-tax manner.






18. The agreement between the Plan Sponsor and the Plan Provider.






19. 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






20. Annual testing of plan's activities to ensure nondiscrimination of non highly compensated employees.






21. Pay-out of funds from a retirement plan to a participant.






22. IRC-specified maximum amount of employee salary that may finance contributions to a retirement plan in a pre-tax manner.






23. Annual testing of plan's activities to ensure nondiscrimination of non highly compensated employees.






24. The person who will benefit from the assets of the plan - once they retire. Usually the employees of the plan sponsor.






25. Type of legal entity that is for-profit - private.






26. Amount of time the employee must work to earn a non-forfeitable right to the benefit accrued by the employee in the plan.






27. 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.






28. The agreement between the Plan Sponsor and the Plan Provider.






29. 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






30. Provisions in the regulation that allow older workers to contribute more deferred income to their retirement plan.






31. 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






32. Legtal entity that includes state - local - and municipal government bodies.






33. IRC-specified regulated minimum value of distributions to participants at certain age.






34. Legal entity that establishes the retirement plan for participants. Retirement plan sponsors are usually the employer of the participants.






35. Non-vested portion of sponsor contributions to participant's retirement funds.






36. Pay-out of funds from a retirement plan to a participant.






37. Legtal entity that includes state - local - and municipal government bodies.






38. Amount of time the employee must work to earn a non-forfeitable right to the benefit accrued by the employee in the plan.