CPC Cheat Sheet 2026

The 30 highest-yield CPC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A CPC is approached by a plan sponsor to help 'backdate' plan documents to qualify for a retroactive amendment. What should the CPC do? → Refuse, as backdating documents constitutes fraud and is a serious ethical violation
2. What is the purpose of the Affordable Care Act (ACA)? → Expand healthcare coverage
3. What does COBRA provide to employees? → Continuation of health insurance
4. A plan's funding target for the current year is $10 million and plan assets are $8 million. What is the funding shortfall? → $2 million
5. Which law governs private pension plans in the U.S.? → ERISA
6. A plan sponsor must obtain a waiver of minimum funding requirements from the IRS when? → Making the minimum required contribution would impose a substantial business hardship
7. How can fiduciaries demonstrate compliance? → Document decisions and processes
8. The ASPPA Code of Conduct requires CPCs to be 'competent' when providing services. What does competence require? → Possessing the knowledge, skills, and experience necessary for the specific engagement
9. Which of the following best describes the 'at-risk' liability used in defined benefit funding calculations? → Liability assuming maximum lump-sum elections and early retirement
10. Under IRC Section 411, what is the maximum cliff vesting schedule permitted for employer contributions to a non-top-heavy qualified plan? → 3 years
11. What is a mutual fund? → A pooled investment managed by professionals
12. Under the graded vesting schedule for non-top-heavy defined contribution plans, what percentage must an employee be vested after completing 4 years of service? → 60%
13. What is the required beginning date (RBD) for required minimum distributions (RMDs) for an employee who retired in 2024? → April 1 following the later of the year the employee turns 73 or the year they retire
14. Which mortality table is currently mandated for determining minimum funding liabilities for single-employer defined benefit plans? → IRS-prescribed mortality tables updated periodically under IRC Section 430(h)(3)
15. What is the purpose of the 'credit balance' in a defined benefit plan's funding standard account? → To track excess contributions that can offset future minimum required contributions
16. Which actuarial cost method spreads the present value of future benefits as a level percentage of projected future compensation? → Entry Age Normal
17. Which agency regulates health insurance marketplaces under the ACA? → CMS
18. What is the maximum contribution limit to a 401(k) plan for 2024 (excluding catch-up)? → $23,000
19. A spouse beneficiary rolls over a deceased participant's 401(k) to an inherited IRA (not a spousal rollover IRA). What unique rule applies? → The spouse can delay RMDs until the deceased participant would have reached the RMD age
20. Under IRC Section 410(a), what is the maximum age and service requirement a qualified retirement plan may impose before allowing an employee to participate? → Age 21 with 1 year of service
21. Which safe harbor 401(k) non-elective contribution design eliminates the need for annual ADP and ACP nondiscrimination testing? → A 3% non-elective contribution to all eligible non-highly compensated employees
22. Which best describes the 'prudent man' standard? → Act with care and diligence
23. Which two alternative tests may a qualified plan satisfy to meet the IRC Section 410(b) minimum coverage requirements? → Ratio percentage test or average benefit test
24. A plan's 'funding target' under PPA 2006 is measured using what interest rate? → 24-month average segment rates based on corporate bond yields
25. A plan's adjusted funding target attainment percentage (AFTAP) falls below 60%. What benefit restriction is triggered? → All benefit accruals must cease immediately
26. Which law requires parity between mental health and physical health benefits? → MHPAEA
27. When a defined benefit plan has an AFTAP between 60% and 80%, what restriction applies? → Only 50% of lump-sum payments otherwise available are permitted
28. In a defined contribution plan termination, what happens to unvested employer contributions? → Participants become 100% vested in all accrued benefits upon plan termination
29. What is the minimum required contribution for a single-employer defined benefit plan under IRC Section 430? → The greater of the target normal cost or the shortfall amortization charge
30. A plan sponsor asks how to handle a significant late deposit of employee 401(k) deferrals. Which program should the CPC recommend for correction? → DOL Voluntary Fiduciary Correction Program (VFCP) with the lost earnings calculator