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CPFA EXAM 2024 LATEST QUESTIONS & ANSWERS SOLVED 100% CORRECT!
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CPFA EXAM 2024 LATEST QUESTIONS & ANSWERS SOLVED 100% CORRECT!
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CPFA Exam Latest Updated Graded b b b bb A+
A) A TPA performs annual compliance testing. - ANSWER-Which statement
b b b b b b b b b
b regarding service providers is TRUE?
b b b b
A) A TPA performs annual compliance testing.
b b b b b b
B) A recordkeeper has the legal obligation to provide an interpretation of a
b b b b b b b b b b b b
b plan provision.
b
C) An accountant processes the "money out" for a participant account.
b b b b b b b b b b
D) A plan advisor is responsible for drafting annual safe harbor notices.
b b b b b b b b b b b
A) Provides efficient contribution and distribution processes. - ANSWER-
b b b b b b b b
Which statement regarding bundled service arrangements is TRUE?
b b b b b b b
A) Provides efficient contribution and distribution processes.
b b b b b b
B) Requires less fiduciary oversight than an unbundled service arrangement.
b b b b b b b b b
C) Permits for specific single provider within the arrangement to be easily
b b b b b b b b b b b
b removed and replaced with another provider.
b b b b b
D) Typical arrangement involves a TPA and an insurance company.
b b b b b b b b b
,A) Combining auto-enrollment with targeted education. - ANSWER-Based on
b b b b b b b b
b behavioral finance research, which of the following is a best practice for
b b b b b b b b b b b
b producing successful participant outcomes?
b b b
A) Combining auto-enrollment with targeted education.
b b b b b
B) Adding a self-directed brokerage option.
b b b b b
C) Re-enrolling all participants into equity investments.
b b b b b b
D) Offering group meetings that focus on participants' rational decision
b b b b b b b b b
b making.
C) DEF has the right to "opt out" and be excluded from the related group. -
b b b b b b b b b b b b b b b
b ANSWER-Company ABC and Company DEF are determined to be part of a b b b b b b b b b b b
b related group of companies. All the following are TRUE except:
b b b b b b b b b
A) The employees of both ABC and DEF may end up participating in one plan.
b b b b b b b b b b b b b b
B) ABC may be required to make contributions for its employees into DEF's
b b b b b b b b b b b b
b plan.
C) DEF has the right to "opt out" and be excluded from the related group.
b b b b b b b b b b b b b b
D) If DEF adopts a plan, ABC employees may be eligible for the plan.
b b b b b b b b b b b b b
,A) Adding an employer matching contribution equal to 25% up to 12% of
b b b b b b b b b b b b
b compensation deferred. - ANSWER-Which of the following plan designs may
b b b b b b b b b
b result in better participant deferral behavior?
b b b b b
A) Adding an employer matching contribution equal to 25% up to 12% of
b b b b b b b b b b b b
b compensation deferred. b
B) Adding a 3% nonelective safe harbor contribution.
b b b b b b b
C) Adding a 1,000 hours of service requirement to receive the employer
b b b b b b b b b b b
b matching contribution. b
D) Adding a profit-sharing contribution.
b b b b
B) Can participants convert their existing contribution accounts to Roth
b b b b b b b b b
b accounts? - ANSWER-An advisor is meeting with a Plan Sponsor to discuss
b b b b b b b b b b b
b contribution design in her plan. All of the following questions will help with
b b b b b b b b b b b b
b this conversation, EXCEPT:
b b
A) Is there a goal that employees should be required to contribute to receive
b b b b b b b b b b b b b
b an employer contribution?
b b
B) Can participants convert their existing contribution accounts to Roth
b b b b b b b b b
b accounts?
C) Is there a group of employees who are unlikely to participate in the plan?
b b b b b b b b b b b b b b
D) How important is it that employees are on track for adequate retirement
b b b b b b b b b b b b
b income?
, B) Does the company have an established line of credit? - ANSWER-Jake is a
b b b b b b b b b b b b b
b sole proprietor and has just established a software development company.
b b b b b b b b b
b He has recently hired two employees. Currently, the company does not have
b b b b b b b b b b b
b a good cash flow, but if Jake can hire more software engineers, growth and
b b b b b b b b b b b b b
b profits should increase. Based on that information, all of the following are
b b b b b b b b b b b
b questions that an advisor should ask when establishing a plan for Jake's
b b b b b b b b b b b
b company, EXCEPT: b
A) Can the company's current cash flow support employer contributions?
b b b b b b b b b
B) Does the company have an established line of credit?
b b b b b b b b b
C) What are Jake's objectives for attracting future employees?
b b b b b b b b
D) Is Jake willing to make a fixed contribution if it enables him to save more?
b b b b b b b b b b b b b b b
B) Has at least two partners. - ANSWER-A partnership is a business that:
b b b b b b b b b b b b
A) Cannot have a limited liability structure.
b b b b b b
B) Has at least two partners.
b b b b b
C) Is typically run by a board of directors.
b b b b b b b b
D) Reports income on form 1120.
b b b b b
A) A plan advisor should inform the employer that required contributions will
b b b b b b b b b b b
b be waived for any year that the company does not make a profit. - ANSWER-
b b b b b b b b b b b b b b
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