CPC Employee Benefits Law & Regulatory Updates 2

Question 1

Under the SECURE 2.0 Act, what is the required beginning date for RMDs for individuals who turn age 73 after December 31, 2022?

Accepted Answer

April 1 of the year following the year the participant turns 73

Answer

SECURE 2.0 raised the RMD age to 73 for those born between 1951 and 1959, with the first RMD due by April 1 of the year after turning 73.

Question 2

Which ERISA section governs the fiduciary duty of prudence for plan administrators?

Accepted Answer

ERISA Section 404(a)(1)(B)

Answer

ERISA Section 404(a)(1)(B) establishes the prudent man standard, requiring fiduciaries to act with the care, skill, prudence, and diligence of a prudent expert.

Question 3

A plan sponsor adopts a long-term part-time employee policy under SECURE 2.0. After how many consecutive years of service with at least 500 hours each year must such employees be eligible to make elective deferrals?

Accepted Answer

2 years

Answer

SECURE 2.0 reduced the long-term part-time employee rule from three consecutive years to two years of service with at least 500 hours each year for plan years beginning after 2024.

Question 4

Which IRS correction program allows plan sponsors to self-correct significant operational failures without IRS approval, effective after SECURE 2.0?

Accepted Answer

Self-Correction Program (SCP)

Answer

SECURE 2.0 expanded SCP to allow self-correction of significant failures, including certain plan document failures, without requiring IRS approval under VCP.

Question 5

Under the Consolidated Appropriations Act of 2023, pension-linked emergency savings accounts (PLESAs) allow non-highly compensated employees to contribute up to what amount on an after-tax basis?

Accepted Answer

$2,500

Answer

PLESAs under SECURE 2.0 permit participants to contribute up to $2,500 (indexed for inflation) in after-tax emergency savings linked to their defined contribution plan.

(CPC) Certified Pension Consultant Practice Test

(CPC) Certified Pension Consultant Practice Test

CPC Employee Benefits Law & Regulatory Updates 2