Practice Test GeeksCRPC - Chartered Retirement Planning Counselor Practice Test
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Employer-Sponsored Retirement Plans Flashcards

7 cards from real CRPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Employer-Sponsored Retirement Plans flashcards as text

  1. What is the 415 limit for defined contribution plans in 2024?

    Answer: $69,000

    IRC Section 415 limits total annual additions to a participant's defined contribution account to $69,000 in 2024 (or 100% of compensation, if less).

  2. A 457(b) plan is available to which of the following employees?

    Answer: State and local government employees and certain nonprofit employees

    457(b) plans are nonqualified deferred compensation plans for state/local government employees and eligible nonprofit employees.

  3. Under the terms of ERISA, what does the term 'plan year' mean for vesting calculation purposes?

    Answer: The 12-month period designated by the plan document

    The plan year is a 12-month period specified in the plan document, which may or may not coincide with the calendar year.

  4. A participant in a defined benefit plan earns a pension benefit based on 1.5% × final average salary × years of service. This is an example of what formula type?

    Answer: Final-pay formula

    A final-pay formula calculates benefits using compensation in the final years before retirement multiplied by years of service.

  5. What is the maximum compensation that can be considered for qualified plan contribution calculations in 2024?

    Answer: $345,000

    The IRC Section 401(a)(17) compensation limit for qualified plan calculations is $345,000 in 2024.

  6. Which of the following is TRUE about a cash balance pension plan?

    Answer: It is a hybrid defined benefit plan that expresses benefits as a hypothetical account balance

    A cash balance plan is a defined benefit plan that credits participants with pay credits and interest credits to a hypothetical account balance.

  7. An employee leaves a job and has $6,000 in a former employer's 401(k). What is the employer permitted to do without employee consent?

    Answer: Force a cash distribution subject to 20% mandatory withholding

    For vested balances of $1,000–$7,000, plans may make an involuntary cash-out, subject to 20% mandatory withholding, unless the participant elects otherwise.