CBP Retirement and Pension Plans 3

Question 1

Under ERISA, a plan must provide a Summary Plan Description (SPD) to new participants within how many days of becoming eligible?

Accepted Answer

90 days

Answer

30 days

Answer

60 days

Answer

120 days

Question 2

What is the 'top-heavy' rule in qualified retirement plans?

Accepted Answer

A requirement for minimum benefits when key employees hold more than 60% of plan assets

Answer

A rule limiting highly compensated employee benefits

Answer

A restriction on executive deferred compensation

Answer

A cap on defined benefit plan accruals

Question 3

Which IRS form must most private-sector employee benefit plans file annually to report plan information?

Accepted Answer

Form 5500

Answer

Form 1099-R

Answer

Form W-2

Answer

Form 8955-SSA

Question 4

What does 'vesting' mean in the context of employer retirement contributions?

Accepted Answer

The employee's non-forfeitable ownership of employer-contributed benefits

Answer

The employee's right to begin contributing to the plan

Answer

The employer's right to reclaim contributed funds

Answer

The process of investing plan assets

Question 5

Under the SECURE Act, what change was made to the required minimum distribution starting age?

Accepted Answer

Raised from 72 to 73 under SECURE 2.0

Answer

Lowered from 72 to 70½

Answer

Raised from 70½ to 72

Answer

Eliminated the RMD requirement for all Roth accounts

Question 6

Which plan feature allows employees to make after-tax contributions to a 401(k) and convert them to Roth status?

Accepted Answer

Mega backdoor Roth conversion

Answer

Backdoor IRA conversion

Answer

In-service distribution

Answer

Non-elective contribution rollover