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. IRS form to report income other than wages.






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






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






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






5. 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.






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






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






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






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






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






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






12. 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






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






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






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






16. 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.






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






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






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






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






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






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






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






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






25. 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






26. 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






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






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






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






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






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






32. IRS form to report income other than wages.






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






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






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






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






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






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