Which statement regarding service providers is TRUE?
A) A TPA performs annual compliance testing.
B) A recordkeeper has the legal obligation to provide an interpretation of a plan provision.
C) An accountant processes the "money out" for a participant account.
D) A plan advisor is responsible f...
✓ -:- B) Can participants convert their existing contribution accounts to Roth
accounts?
Jake is a sole proprietor and has just established a software development company. He has
recently hired two employees. Currently, the company does not have a good cash flow, but
if Jake can hire more software engineers, growth and profits should increase. Based on that
information, all of the following are questions that an advisor should ask when establishing
a plan for Jake's company, EXCEPT:
A) Can the company's current cash flow support employer contributions?
B) Does the company have an established line of credit?
C) What are Jake's objectives for attracting future employees?
D) Is Jake willing to make a fixed contribution if it enables him to save more?
✓ -:- B) Does the company have an established line of credit?
A partnership is a business that:
A) Cannot have a limited liability structure.
B) Has at least two partners.
C) Is typically run by a board of directors.
4|Page | Grade A+| 2024/2025
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