#1
Which regulatory body oversees retirement plans in the United States?
Federal Reserve
Securities and Exchange Commission (SEC)
Internal Revenue Service (IRS)
Environmental Protection Agency (EPA)
#2
What is the maximum annual contribution limit for an Individual Retirement Account (IRA) in 2022?
#3
In a defined benefit plan, how is the retirement benefit typically calculated?
Based on the participant's account balance
Based on the participant's investment returns
Based on a predetermined formula considering factors like salary and years of service
Based on the employer's discretion
#4
What is the 'fiduciary duty' in the context of retirement plans?
The duty of participants to contribute regularly
The duty of employers to disclose plan information
The duty of plan sponsors to act in the best interest of participants
The duty of government agencies to regulate retirement plans
#5
What is the maximum annual limit for employee contributions to a 401(k) plan in 2022?
$15,000
$18,500
$20,000
$25,000
#6
What is the primary purpose of a 401(k) plan in retirement planning?
Tax-free withdrawals
Long-term care coverage
Estate planning
Tax-advantaged retirement savings
#7
In the context of retirement plans, what does ERISA stand for?
Employee Retirement Income Security Act
Earned Retirement Investment and Savings Act
Employment and Retirement Income Security Act
Employee Retirement and Investment Savings Act
#8
Which type of retirement plan is specifically designed for self-employed individuals and small business owners?
401(k) plan
Defined Benefit Plan
Simplified Employee Pension (SEP) IRA
Roth IRA
#9
What is the 'Required Minimum Distribution' (RMD) for traditional IRAs once an individual reaches the age of 72?
#10
What is the purpose of a Roth 401(k) as compared to a traditional 401(k)?
Tax-free contributions
Tax-free withdrawals
Tax-deferred growth
Tax-free employer contributions
#11
What role does the Employee Benefits Security Administration (EBSA) play in retirement plan regulation?
Overseeing plan investments and fiduciaries
Setting contribution limits
Enforcing tax regulations
Providing financial assistance to retirees
#12
What is a 'vested interest' in the context of retirement benefits?
Interest earned on retirement savings
A legal right to receive certain benefits
Interest accrued on loans within the plan
Interest paid by the employer on contributions
#13
Which of the following events may trigger a retirement plan termination?
Increase in the number of plan participants
Merger or acquisition of the sponsoring company
Routine plan audit by the IRS
Employee requests for increased benefits
#14
What is the purpose of a QDRO (Qualified Domestic Relations Order) in the context of retirement plans?
To facilitate tax-free withdrawals
To distribute retirement benefits in divorce proceedings
To provide additional tax incentives
To secure retirement funds in case of bankruptcy
#15
Which government agency administers the Pension Benefit Guaranty Corporation (PBGC) in the United States?
Department of Labor
Department of the Treasury
Department of Commerce
Department of Justice
#16
What is the significance of the 'top-heavy' rule in retirement plan administration?
Ensures top executives receive higher benefits
Ensures a fair distribution of benefits among all employees
Limits contributions for highly compensated employees
Encourages top executives to contribute more
#17
How does a cash balance plan differ from a traditional pension plan?
Cash balance plans have no age-based benefits
Cash balance plans guarantee fixed monthly payouts
Cash balance plans provide lump-sum distributions at retirement
Cash balance plans combine elements of defined benefit and defined contribution plans