RPF M6 U4 Case Studies

Question 1

What is the purpose of the case studies in Unit 4?

Answer 1

The case studies demonstrate how various components influence the takeover or conversion process and help recognize red flags.

Question 2

What is the first scenario in the case studies?

Answer 2

The first scenario addresses the activities required for a takeover of administrative services only.

Question 3

What issue did Snowpushers, Inc. face with their TPA?

Answer 3

Snowpushers, Inc. failed to make the safe harbor match for the last plan year due to miscommunication.

Question 4

Who assisted Snowpushers, Inc. in selecting a new TPA?

Answer 4

The plan sponsor’s CPA, Accountants Unlimited, assisted in the search for a new TPA.

Question 5

What is Martin Mitchell’s role in the takeover process?

Answer 5

Martin Mitchell is assigned to complete all of the takeover tasks for the plan.

Question 6

What does Martin need to restate in the plan document?

Answer 6

Martin needs to restate the plan document to the document sponsored by AdministrativePros.

Question 7

What does the service agreement specify regarding data provision?

Answer 7

The service agreement includes a penalty fee for late provision of data or failure to provide necessary data for administration.

Question 8

What information does Martin need from Alice for the plan administration?

Answer 8

Martin needs copies of the last annual valuation report, Form 5500 series, quarterly reports, participant loans, and the current plan adoption agreement.

Question 9

What did Martin discover about the employee’s birthdate during his review?

Answer 9

One employee’s birthdate discrepancy could impact nondiscrimination testing.

Question 10

What was Harold’s initial reaction to the error in the employee’s birthdate?

Answer 10

Harold was upset and wanted to cancel the service agreement with AdministrativePros.

Question 11

What did Alice request after Harold changed his mind?

Answer 11

Alice requested a new proposed allocation report to show the correct birthdates.

Question 12

What is the role of Dynamo Administrators in Case Study 2?

Answer 12

Dynamo Administrators has provided administration services to the Acme Underground, Inc. 401(k) Plan.

Question 13

What issue did Anna notice while preparing the annual valuation report?

Answer 13

Anna noticed that the investments held in the plan were not generating the same level of gains as other plans.

Question 14

What was the outcome of the meeting between Mike and Fred?

Answer 14

It was agreed to move the funds to Whiz Bang Investment Co. with re-enrollment of all participants.

Question 15

What is Anna’s responsibility after the Board’s approval?

Answer 15

Anna is tasked with ensuring all necessary steps are taken to complete the transfer of investments to Whiz Bang Investment Company.

Question 16

What must be communicated to plan participants regarding the new investment contract?

Answer 16

Meetings must be held to explain the new investment options and re-enrollment process.

Question 17

What did Anna need to determine regarding the Whiz Bang contract?

Answer 17

Anna needed to follow up on when the contract would be available for signature and schedule employee meetings.

Question 18

What does Anna do to schedule employee meetings?

Answer 18

Anna contacts Whiz Bang’s presenter to request available times and days for meetings.

Question 19

What information does Fred provide to Anna?

Answer 19

Fred provides updated data for all employees, including termination dates, names, Social Security numbers, dates of birth, and marital statuses for newly hired employees.

Question 20

What does Anna inform Mike about the Whiz Bang contract?

Answer 20

Anna informs Mike that the contract is expected to be signed at his meeting with Fred and emphasizes the importance of scheduling employee meetings.

Question 21

What does Anna remind Fred during their call?

Answer 21

Anna reminds Fred that a decision on which investments will be QDIAs is needed to include in the employee meeting material.

Question 22

What happens after Mike returns with the signed contract?

Answer 22

Anna contacts the Whiz Bang presenter to arrange employee meetings but learns the presenter is unavailable for two weeks.

Question 23

How does Anna schedule the employee meetings?

Answer 23

After learning the presenter is unavailable, Anna schedules the employee meetings for three weeks later.

Question 24

What does Anna prepare for the employee meetings?

Answer 24

Anna prepares the Blackout Notice, QDIA Notice, and Employee Information Packets.

Question 25

What does Wilma notify Anna about?

Answer 25

Wilma notifies Anna of the expected end date for the blackout notice.

Question 26

What does Anna do with the Blackout Notice?

Answer 26

Anna forwards the Blackout Notice to Wilma for inclusion in the information packets for the employee meetings.

Question 27

What instructions does Wilma prepare?

Answer 27

Wilma prepares instructions on how to make a deposit and how information is to be provided with each deposit.

Question 28

What does Anna do after receiving the deposit instructions?

Answer 28

Anna tells her manager, who calls Fred to set up an appointment to deliver the information.

Question 29

What does Anna do with the wiring information?

Answer 29

Anna forwards the wiring information to Aspiring for the transfer of plan assets.

Question 30

What is the deadline for returning election forms?

Answer 30

Election forms are to be returned to the payroll clerk by two weeks after the last employee meeting.

Question 31

What does Anna do when she finds missing election forms?

Answer 31

Anna emails the payroll clerk to inform her of the missing forms and asks her to follow up with the participants.

Question 32

What does Anna do on the first payroll date after receiving elections?

Answer 32

Anna forwards the payroll clerk's list of participants and deferral amounts to Wilma at Whiz Bang.

Question 33

What does Anna schedule with the payroll clerk?

Answer 33

Anna schedules a call to walk the payroll clerk through the wire transfer process.

Question 34

What does Wilma do with the check received from the payroll clerk?

Answer 34

Wilma forwards the check for deposit and enters the deferrals into their system.

Question 35

What does Wilma do after the check clears?

Answer 35

Wilma activates Whiz Bang's online access for participants.

Question 36

How does Anna address an employee's concern about his 401(k) money?

Answer 36

Anna explains that the bulk of the money is still at Aspiring Investments and reminds him of the blackout notice.

Question 37

What does Anna verify the day before the transfer date?

Answer 37

Anna verifies with Aspiring Investments that the transfer will take place and when the participant breakdown will be available.

Question 38

What issue does Wilma encounter after the asset transfer?

Answer 38

Wilma finds that the total of participant account balances is different from the amount wire transferred.

Question 39

What does Anna do when she learns of the discrepancy?

Answer 39

Anna creates a notice to inform participants that the blackout period will be extended.

Question 40

What does Anna confirm with Wilma regarding the loan?

Answer 40

Anna confirms that the net amount of the loan and loan payment accounts for the difference in amounts.

Question 41

What does Wilma do after confirming the loan information?

Answer 41

Wilma completes the deposit of the transferred amounts into each participant's account.

Question 42

What is the final outcome of the conversion process?

Answer 42

The conversion of the plan from Aspiring Investments to Whiz Bang Investment Co. is complete, and participant accounts are established.