CPC Employee Benefits Law & Regulatory Updates 3

Question 1

Under IRC Section 415, what is the 2024 annual addition limit for defined contribution plans?

Accepted Answer

$69,000

Answer

For 2024, IRC Section 415(c) limits total annual additions to defined contribution plans to $69,000 (or 100% of compensation if less).

Question 2

Which ERISA provision requires plans to provide a summary of material modifications (SMM) within how many days after the end of the plan year in which a material change was adopted?

Accepted Answer

210 days

Answer

Under ERISA Section 104(b)(1), an SMM must be furnished within 210 days after the end of the plan year in which the material modification was made.

Question 3

A 401(k) plan sponsor wants to add an auto-escalation feature that automatically increases deferral rates. Which safe harbor under ERISA exempts this from the prohibited transaction rules relating to plan expenses?

Accepted Answer

Qualified Automatic Contribution Arrangement (QACA) safe harbor

Answer

A QACA provides a safe harbor from ADP/ACP testing and requires auto-enrollment with auto-escalation, starting at a minimum 3% deferral rate increasing to at least 6%.

Question 4

Which federal law extended COBRA continuation coverage from 18 months to up to 36 months for qualified beneficiaries who experience a second qualifying event during the initial 18-month period?

Accepted Answer

ERISA Section 602

Answer

ERISA Section 602 provides that a second qualifying event (such as death or divorce) during the initial 18-month COBRA period extends coverage up to 36 months from the original qualifying event.

Question 5

Under the ACA's employer shared responsibility provisions, applicable large employers (ALEs) with 50 or more full-time equivalents must offer minimum essential coverage to what percentage of full-time employees to avoid the Section 4980H(a) penalty?

Accepted Answer

95%

Answer

Under IRC Section 4980H(a), ALEs must offer minimum essential coverage to at least 95% of full-time employees (and their dependents) to avoid the employer mandate penalty.

(CPC) Certified Pension Consultant Practice Test

(CPC) Certified Pension Consultant Practice Test

CPC Employee Benefits Law & Regulatory Updates 3