M6: Quizzes Flashcards
All of the following are core services provided by TPAs, except:
A. Preparation of Form 5500
B. Plan documents and amendments
C. Compliance testing
D. Investment selection and monitoring
D. Investment selection and monitoring
Page 10, Learning outcome 2.2 text pg 232
NAV stands for:
A. Net asset volume
B. Net active value
C. Net asset value
D. No asset value
C. Net asset value
Page 10, Learning outcome 2.3 text pg 232
In developing an outline to serve as a guide to various parties establishing a qualified retirement plan, there are 4 key areas of responsibilities. All of the following are responsibilities, except:
A. Plan design and implementation
B. Fiduciary responsibilities with plan investments
C. IRS and DOL compliance
D. FTC compliance
D. FTC compliance
Page 12, Learning outcome 2.5 text pg 234-235
Who does the DOL consider to be responsible for maintaining required plan record?
A. ERISA
B. The plan service provider
C. The employer
D. The plan administrator
D. The plan administrator
Page 13, Learning outcome 3.1 text pg 236
Under ERISA Section 107, plans required to file Form 5500 and related schedules must maintain a copy for a minimum of how many years after the filing date?
A. Six years
B. One year
C. Three years
D. Five years
A. Six years
Page 14, Learning outcome 3.2 text pg 236-237
Which of the following was most common default option for deferred compensation plans prior to the Pension Protection Act of 2006?
A. Stocks
B. Bonds
C. Money market funds
D. Mutual funds
C. Money market funds
Page 18, Learning Outcome 4.2, Test Page 244
Section _______ of ERISA requires plan administrators to retain records related to the determination of each employee’s benefit for what, in some cases, could turn out to be decades.
A. 107
B. 210
C. 106
D. 209
D. 209
Page 15, Learning Outcome 3.4, Test Page 238
In _______, the Pension Protection Act was enacted and brought forth the concept of Qualified Default Investment Alternatives (QDIAs).
A. 2003
B. 2006
C. 2005
D. 2002
B. 2006
Text, page 252
The Supreme Court reaffirmed the duties of retirement plan sponsors to monitor and update plan options with their finding in Court noted that a plan sponsor could not evade responsibility by offering “an adequate array of choices.”
A. Tibble v. Edison
B. Tibble v. Northwestern
C. Hughes v. Northwestern
D. Edison v. Northwestern
C. Hughes v. Northwestern
Page 7, Learning Outcome 1.2, Test Page 225
______ are the most popular default DC investment in the post-PPA world. This type of investment seeks higher returns by taking greater risk when workers are younger, because they have earnings as a cushion and they have a longer investment horizon to weather short-term volatilities.
A. Money market funds
B. TDFs
C. Balanced funds
D. Professionally managed accounts
B. TDFs
Page 18, Learning Outcome 4.2, Test Page 244
In January 2021, the court case of Hughes v. Northwestern University reaffirmed the duties of retirement plan sponsors.
True or False?
False
Fiduciaries should review recent changes in the law with an ERISA counsel, including court cases and government announcements.
True or False?
True
IRS and DOL compliance includes preparing Form 5500 and applicable schedules.
True or False?
True
The DOL considers the plan service provider, not the plan administrator, responsible for maintaining require plan records.
True or False?
False
Distribution records, including withholding and Forms 1099-R, are required to be kept for a minimum of five years after the 5500 filing.
True or False?
False