Course 2: Plan Qualifications Flashcards
(120 cards)
1
Q
______ ______ plans are afforded favorable tax treatment, including tax deductible contributions, deferral of taxation to the employee, favorable tax treatment on distributions to employees and tax deferred investment earnings on plan assets.
A
Qualified retirement plans
2
Q
Qualified plans must satisfy certain requirements set forth in the ______ ______ Code (IRC) and _______ _______.
A
Internal Revenue Code, Treasury Regulations
3
Q
The body of law that governs retirement plans is the ______ ______ _______ _______ ___ of 1974 (ERISA)
A
Employee Retirement Income Security Act
4
Q
ERISA is made up of four sections:
-The DOL, its administrative agency, the ____, the Department of the Treasury and its administrative agency, the ___
A
EBSA, IRS
5
Q
Jurisdiction over the tax issues and qualification for the various tax benefits of being a qualified plan is given to the ______ and the ___.
A
Treasury, IRS
6
Q
Jurisdiction over protecting participants’ rights and governing fiduciary behavior is granted to the ___ and ____
A
DOL, EBSA
7
Q
ERISA Title I: contains the _____ ___ ______ of ERISA. This includes the minimum standards for eligibility, ______ and funding. Reporting and disclosure rules and _______ standards are also prescribed by Title I.
A
labor law provisions, vesting, fiduciary
8
Q
ERISA Title I: The ______ provisions empower the DOL, participants, _______, and the plan fiduciaries to enforce the Title I requirements and to seek redress for ______.
A
enforcement, beneficiaries, violations.
9
Q
ERISA Title II: contains the ___-_______ provisions of ERISA that amended the IRC sections relating to qualified plans. This includes provisions that parallel the Title I minimum standards for ______, vesting and funding.
A
tax-related,eligibility
10
Q
ERISA Title II: contains sections that relate solely to the tax aspects of qualified plans and do not have _______ _____ in Title I (coverage rules, limitations under 415 and ___-_____ rules under 416
A
parallel provisions, top-heavy
11
Q
ERISA Title III: Includes the _______ provisions of ERISA that divide enforcement responsibilities between the IRS and ___.
A
Administrative, DOL
12
Q
ERISA Title IV: Established the _______ _______ _______ _______ (PBGC), which provides an insurance program for defined benefit plans. Under certain circumstances the PBGC will pay _______ _______ to participants on behalf of a defined benefit plan that terminates without sufficient assets to fulfill all benefit liabilities.
A
Pension Benefit Guaranty Corporation, guaranteed benefits
13
Q
ERISA Title IV: Contains procedures that must be followed by a sponsor of a defined _______ plan when the plan terminates. Congress assigned responsibility to the PBGC for maintaining the defined benefits for ____ participants. Congress later expanded that responsibility to include defined contribution plan ____ participants.
A
benefit, lost, lost
14
Q
The Internal Revenue Code (IRC) 401(a) requirements must be satisfied in form and in ______.
A
operation
15
Q
Compliance in form means the plan document includes the relevant provisions of IRC 401(a). Treas. Reg. 1.401-1(a)(2) requires the plan to be a ______ ______ ______
A
definite written program
16
Q
Failure to satisfy the ____ requirement is grounds for _______, even if the plan is operated properly.
A
Form, disqualification
17
Q
Plan document violations may be corrected within a certain time frame, called the ______ ______ period.
A
remedial amendment
18
Q
If the remedial amendment has expired, the problem may be resolved under the ______ ______ with IRS ______ ______ (VCP), which is part of the IRS’s Employee Plans Compliance Resolution System (EPCRS), an articulated program under which the plan sponsor may correct _______ problems.
A
Voluntary Correction, Approval Program, Qualification
19
Q
All the requirements to be a ______ plan are described or _____-_______ in IRC 401(a).
A
qualified, cross-referenced
20
Q
______ plans and nonelecting church plans (i.e. church plans that have not elected to be covered by ______ of ERISA) are exempt from several of the IRC 401(a) requirements.
A
Governmental, Title I
21
Q
IRC 401(a)(1) (Plan must be for ______)
The qualified plan must be for the ______ of the employer. ______ ______ may not be covered by the plan. The term “employee” includes self-employed individual of a sole proprietorship or ______. For the rules to be met, the plan must be sponsored by an ______.
A
Employees, employees,Independent Contractors, partnership, employer
22
Q
IRC 401(a)(1) (Assets must be held in trust)
A trust is a separate _____ ______ that holds title to assets set aside on behalf of beneficiaries. The written trust document outlines who is entitled to benefit from _____ ______. The trust is administered by a trustee, who is responsible for safeguarding and investing the funds for the _______.
A
Legal entity, trust assets, beneficiaries.
23
Q
IRC 401(a)(2) (Exclusive Benefit Rule)
A plan must be maintained for the exclusive benefit of the _____ and their ______. This rule is known as the exclusive benefit rule. It prohibits the employer from diverting the assets for its own ______.
A
participants and their beneficiaries, benefit.
24
Q
IRC 401(a)(2) (Exclusive Benefit Rule)
Under certain circumstances, an employer may receive a return of ______ made to the plan. In addition, the payment of ______ from the plan, although not provided benefits to the plan ______, is permissible under the exclusive benefit rule, as long as the ______ are reasonable to relate to administrative or fiduciary operations of the plan.
A
contributions, expenses, participants, expenses
25
IRC 401(a)(2) (Exclusive Benefit Rule)
An _______ instance of imprudent investment activity does not alone create a ______ of the exclusive benefit rule.
Isolated, violation
26
When the employer contributes to the plan, the contribution is ______. If the employer could take back the contribution, the participants' ______ ______ would be compromised.
irrevocable, accrued benefits
27
Under specific circumstances, a return of contributions to the employer is permissible. Contributions me be returned if:
-the contributions are made under a _______ __ ____;
-there is a ______ of the deduction taken for contributions or
-contributions are made to a plan that fails to initially qualify under ______.
Mistake of Fact, disallowance, IRC 401(a)
28
If there is a mistake of fact or a disallowance of deduction, the contributions must be returned no later than __ months after the mistake or disallowance. (Different rules apply to ______ plan)
12 months, multiemployer
29
______ on the contributions may not be returned if the reversion is due to a mistake of fact or disallowance of deduction. If there has been a net investment ____ on the contributions, the amount returned must be reduced by the amount of such ____.
Earnings, loss, loss
30
In the case of a _____ due to initial disqualification of the plan, the entire assets of the plan are subject to ______, including any earning on contributions that have been made prior to the issuance of the ______ ______ ______.
Reversion, reversion, adverse determination letter
31
The IRS has not ______ a mistake of fact. In ______ ______ ruling, the IRS suggested that only ______ or _______ will fall into this category. Merely because a contribution by the employer is not currently deductible (deduction limit failures) does not make the contribution a mistake of fact.
defined, Private Letter,mathematical or typographical
32
The IRS interprets a ______ __ ______ to mean that the IRS actually must ______ a deduction claimed by the employer, not that the employer determines its contribution is not deductible. If the amount of the nondeductible contributions is $25,000.00 or less, the nondeductible amount may be returned without having to obtain and IRS ______.
disallow of deduction, disallow, ruling.
33
A reversion for failure to initially qualify is applicable only if the plan fails to qualify ______ to its original effective date. In such case, all plan assets may revert to the ______. The following conditions must be satisfied:
1. Contributions to the plan are ______ on obtaining initial qualification.
2. The plan receives an ______ ______ letter with respect to its initial qualification; and
3. The ______ ___ _ _______ letter is filed within the applicable remedial amendment period that applies to the initial plan year.
retroactive, employer, conditioned, adverse determination, application for a determination
34
If the plan amended after it receives its ______ ______ letter and such amendment causes the plan to become disqualified, there are no exceptions. An employer might use this exception to ______ the adoption of a plan that is inappropriate for the employer. If the plan is ______ submitted for its ______ ______ letter, and an ______ ______ is made, the employer may have the entire fund reverted and no benefits are owed to the participants (other than contributions made by the participants.)
initial qualification, reverse, timely,initial determination, adverse determination
35
A plan may pay expenses relating to ______ ______ of administering the plan, included investment management or trustee fees, ______ _____and reporting and disclosure expenses incurred by the plan.
reasonable expenses, recordkeeping fees
36
A qualified plan may not impose ___ and _______ requirements that are more stringent than those permitted by IRC 410(a). A qualified plan must also cover a fair cross-section of employees, demonstrated by satisfying the ______ _____ requirements under IRC 410(b).
age and service, minimum coverage
37
A qualified plan must not ______ in favor of highly compensated employees (___). Special ______ testing rules are prescribed by IRC 401(k) and IRC 401(m) for ______ ______, matching contributions and _____-___ employee contributions.
discriminate,HCEs,nondiscrimination, elective deferrals, after-tax
38
The IRC 401(k) ______ test (the ______ ______ ______ or ADP test) applies to elective deferrals (both pre-tax and designated Roth) under a 401(k) arrangement.
nondiscrimination, Average Deferral Percentage
39
The IRC 401(m) nondiscrimination test (the ______ ______ ______or ACP Test) applied to _____-___ employee contributions and to employer ______ contributions.
Average contribution percentage, after-tax, matching
40
A plan must satisfy the ______ ______ ______ under IRC 411, which includes vesting schedule requirements, ______ and break-in-service rules and vesting requirements for partial or complete ______ of a plan.
minimum vesting standards, forfeiture, termination
41
Other ______ requirements found in IRC 411 include ______ requirements for certain plan distributions and the prohibition against the ______ of benefits by amendment (known as the ____-_____ rule.)
qualification, consent, reduction, anti-cutback
42
A qualified plan must commence the payment of benefits no later than the ______ ______ date prescribed by IRC 401(a)(9), which is wholly or partly determined by when the employee attains age 72 (70 1/2 prior to 2020)
required beginning
43
IRC 401(a)(10) requires a qualified plan to satisfy special ______ and ______ requirements if the plan is top-heavy
vesting and accrual
44
IRC 401(a)(11) requires a qualified plan to provide a qualified joint and ______ ______ (QJSA) to a participant unless certain notice and consent requirements are satisfied. Most profit-sharing plans, stock bonus plans and 401(k) plan are ___ subject to this requirement
survivor annuity, not
45
IRC 401(a)(12) certain requirements for protecting benefits must be satisfied in a ____ _____ or in a transfer of plan assets and ______.
Plan merger, liabilities
46
IRC 401(a)(13) protects a participant's accrued benefit from ______ or ______. This is called the ______ rule and the protection extends to ______, levy, execution or other legal or equitable process by the participant's creditors. The _____ assets are also protected from the employers creditors because the ____ assets are held exclusive for benefit of the participants and their beneficiaries and not part ot the ______ general assets.
assignment or alienation, antiassignment, garnishment, trust, trust, employers
47
The law and regulations provide for some exceptions to the ______ rule:
-Federal tax levies;
-Participant _____;
-QDROs;
-Certain ______ assignments; and
-offset of participants benefit for fiduciary _____
Antiassignment, loans, voluntary, breach
48
A qualified plan must not postpone the ______ of benefits later than the date provided in IRC 401(a)(14) with the employee's consent.
commencement
49
IRC 401(a)(15): prevent a qualified plan from reducing plan benefits due to ______ in Social Security benefits that occur after plan benefit payments commence.
Increases
50
IRC401(a)(16): A qualified plan must not ______ the limitations on contributions and benefits that are imposed by IRC 415.
exceed
51
IRC401(a)(17): A qualified plan may not determine contributions or benefits by taking into account more than a ______ dollar amount of compensation.
prescribed
52
If a qualified plan provides for ______ employee contributions, it may not forfeit benefits on account of a ______ of those contributions, except as ______ by IRC 401(a)(19)
mandatory, withdrawal, permitted
53
IRC 401(a)(20): A ______ plan may permit a participant to receive distribution of benefits when the plan ______, even though the normal distribution events permitted for pension plans are not satisfied by the participant.
pension,terminates
54
IRC 401(a)(22): A defined contribution plan (other than a profit-sharing plan) that invests in employer ______ that are not readily tradable must satisfy the ______ rights requirements IRC 409(e) with respect to such ______. This requirement applies only if more than 10 percent of plan assets are in the form of employer securities.
securities, voting, securities,
55
IRC 401(a)(23): If the qualified plan is a Stock bonus plan, it must satisfy the requirements of IRC 409(h), relating to distributions in the form of employer _____ and put options and the special ______ _______ of IRC 409(o)
securities, distribution requirements
56
Some qualified plans ______ their respective assets into a group trust. IRC 401(a)(25) permits the inclusion in a group trust of the monies of any ______ plan, 457 plan or governmental unit described in IRC 818(a)(6).
commingle, governmental
57
IRC 401(a)(27): A profit-sharing plan or money purchase plan must be ______ as such.
designated
58
IRC 401(a)(28): A participant in an ______ _____ _____ plan (ESOP) who has attained age 55 and has at least ten years of participation in the plan must be permitted to ______ the investment of a portion of his or her account held in employer securities. Certain ESOPS must obtain ______ _____ of the employer securities.
Employee Stock Ownership, diversify, independent appraisals
59
IRC 401(a)(30): a 401(k) plan must not permit ______ ______ for a calendar year to exceed the applicable dollar limit under IRC 402(g).
elective deferrals
60
IRC 401(a)(31): A qualified plan must provide a ______ ______ for an eligible rollover distribution and a must pay mandatory ____-___ amounts between $1,000 and $5,000 into a rollover IRA. A qualified plan is not required to accept rollover contribution
rollover option, cash-out
61
IRC 401(a)(35): A defined contribution plan is limited in the ability to ____ participants to invest their accounts in employer ______.
Force, Securities
62
IRC 401(a)(37): A qualified plan must provide certain ______ benefits to individuals who die while performing qualified ______ service under USERRA.
survivor, military
63
IRC 401(a)(38): A defined contribution plan can permit the distribution of certain ______ ______ investments when the plan is no longer authorized to hold the investment.
lifetime income
64
There are ___ _____ of plan disqualification that will affect tax years that include the first year in which this disqualification is effect and all ______ years.
tax ramifications, subsequent
65
Tax years that are closed for tax purposes _______ be reopened by the IRS. A closed year is one for which the statue of limitations on the ______ of tax has eneded.
cannot, collection
66
The timing of the statue of limitations depends on the ______ involved and the type of ___ that the IRS is attempting to collect.
Return, tax
67
______ is rare. If a plan is ______ and the IRS discovers a qualification failure, the plan sponsor will enter into a ______ ______ with the IRS under the procedures contained in the Employee Plans Compliance Resolution System (EPCRS) established by the ___.
Disqualification, audited,negotiated settlement,IRS
68
In an _____ ______, the plan sponsor will be required to pay a ______ ______ as part of the settlement, and the starting point for negotiating the amount of that sanction is the amount of _____ that would have been due had the plan been disqualified (called the "______ ______ ______" in the EPCRS procedure.)
Audit setting, monetary sanction, taxes, maximum payment amount
69
If a plan is disqualified, the ______ loses its deduction for ______ contributions made to the plan for open tax years.
employer, nonvested
70
An employers tax years generally are open for ______ years from the due date (including ______) of the employer's tax return. (Statue of Limitations)
Three, extensions
71
A six-year statute can apply if there is a _______ _____-______ of income. No statue of limitations applied if a return was not ______ for the year, or if a ______ return is filed. (Statue of Limitations)
substaintial under-reporting, filed, fraudulent
72
In a plan does not maintain _____ shares for each employee, the ______ deduction is lost, even if the contributions fund vested benefits. (Loss of Deduction)
separate, entire
73
If a plan remains disqualified, a contribution (or portion of a contribution) that is not ______ because it was not vested when contributed, will be ______ in the year in which it becomes vested.
deductible, deductible
74
For open tax years, the employee recognizes ______ with respect to the vested contributions. If a plan is disqualified solely because of a ______ violation, nonhighly compensated employees (NHCEs) do not recognize income because of the disqualification, even with respect to ______ contributions allocated with respect to such employees.
Income, coverage, vested
75
If a plan is disqualified, the trust loses its ___ _____. Therefore, for open tax years, the trust must recognize income _____ to current earnings (eg., interest, dividends, and capital gains.)
tax exemption,attributable
76
A distribution from a disqualified plan is not eligible for ______. Any amounts rolled over to an eligible retirement plan as defined in IRC 402(c)(8) would not be ______ from income because of such rollover. The distribution would be includible in income for the year of payment, as if the ______ did not occur.
rollover, excludable, rollover
77
ERISA and IRC both require that qualified plans have ______ ______
Written documents
78
The IRS has ______ the written document requirement to mean that a plan document must be one ______ plan, containing all of the ______ plan provisions, leaving only _____ details to the plan administrator's discretion.
interpreted, integrated, significant, administrative
79
Certain IRC and ______ Regulation rule must be fully included in the plan document; others may be incorporated by _____. Furthermore, the plan documentation may not include provisions that violate the ___.
Treasury, reference, Law
80
Historically the IRS has published sample provisions that must be in a qualified plan document in the listing of ______ _____. This listing is modified when the law or _____ changes significantly, to reflect the then current rules.
Required Modifications, guidance
81
The IRS has procedures for plan ______ and provides a listing of the requirements for plan documents in an additional ______ ______, called the _______ ____ __ ___ in Plan Qualification Requirements.
amendments,annual compendium,Cumulative List of Changes
82
A plan sponsor may retain _____ counsel or other practitioners to prepare a plan document from ______, drafted particularly for that plan. This is called an ______ designed plan.
legal,scratch, individually
83
Most ______ or other practitioners maintain a sample plan document that contains the necessary ______ for a qualified plan and they modify that language as needed for a given ______.
attorneys, language, client
84
What really makes a plan individually designed is that the language has not been given ___-______ by the IRS and that each of these documents is ______ in its entirety when a favorable ______ ______ is requested.
pre-approval, reviewed, determination letter
85
There is no certain way to know if an _______ ______ plan document satisfies all the ______ rules, or that there are not provisions in the plan to which the IRS would _____ on audit.
individually designed,qualification, object
86
The IRS maintains a procedure whereby a practitioner may submit a ____ ______ for a determination that _____ the qualification rules.
-The practitioner will submit the ______ designed plan to the IRS.
-The IRS will only review plans for their initial qualification and upon the _______ of the plan.
-The IRS reviews the document and, if there are _______ provisions, give the practitioner an opportunity to modify the document as needed.
-Some negotiations may take place during this procedure, permitting the practitioner to discuss the provisions at issues with the IRS and come to an ______ about what any modified language should say.
-At the end of the review and negotiation process, the IRS will issue a ______ ______, stating whether the plan satisfies the qualification requirements.
Plan document,satisfies, individually, termination, objectionable, agreement, determination letter
87
If a determination letter states a plan satisfies qualification requirements, this is known as a ______ determination letter.
Favorable
88
If a determination letter states a plan does not satisfy qualification requirements, this is known as a ______ determination letter and will proceed with the steps to ______ the taxes due in the basis that the plan has been _______.
Adverse, collect, disqualified.
89
Disqualified plans may:
-Pay the taxes and ______ the disqualification
-Pay the taxes and file a lawsuit in the US ______ Court for a refund
-Refuse to pay the taxes and file a ______ in ___ _____ for adjudication of the disagreement.
concede, District,lawsuit in Tax Court
90
A plan is never required to obtain a ______ ______ ______ and a plan may be a qualified plan without having such a letter.
Favorable determination letter
91
A plan is never required to obtain a ______ ______ ______ and a plan may be a qualified plan without having such a letter. The letter is simply an ______ ______ by the IRS outside an audit setting that the plan document satisfies the qualification rules
Favorable determination letter,advance determination
92
It is almost a ______ practice to submit an _______ designed plan for a determination letter.
universal, individually
93
An alternative to an individually designed plan, a plan sponsor may elect to adopt a ___-______ plan that is sponsored by an _________ that provides services to the plan.
Pre-approved, organization
94
A ___-______ plan is a document that has been pre-approved by the IRS for use for qualified plans. The document can be made up either in ___ parts, an _______ _______ and the basic plan document or as a single document.
Pre-Approved, Two, adoption agreement
95
The _______ ______ contains the variable sections of the plan, with several options available to the ______ employer. The employer selects the desired provisions by checking the boxes and ______ in blanks on the adoption agreement
Adoption Agreement, adopting, filling
96
The ______ ___ document contains boilerplate language that is common to all plans of that type. This part of the plan document may not be changed if the plan's ___-______ status is to be maintained.
Basic Plan Document, pre-approved
97
In the single document approach, the options not selected are ______ from the final document with only those selected remaining and looks like an ______ designed plan.
deleted, individually
98
Prior to 2017, the IRS offered two separate programs. One was called the _____ & ______ (M & P) program and generally offered the plans in the two-part format. The other referred to as the ______ ______ program which was generally made up of the one document format. In 2017, the IRS combined the two programs under one title, called the ___-______ Program.
Master & Prototype, Volume Submitter,Pre-Approved
99
For IRS approval of a pre-approved plan, the sponsoring organization (or, if applicable, the ____ ______) submits the pre basic plan and adoption agreements (called the ____ _______) to the IRS for review. At the end of the process, if the IRS gives its approval to the lead documents, it will issue an opinion letter for each type of ______ ______ offered with the basic plan document.
Mass Submitter, lead documents, adoption agreement.
100
Once the ______ ______ is issued by the IRS for a pre-approved plan, the plan documents may be used by employers. If the adoption agreement is completed correctly and no changes are made to the plan’s _______ language, the adopting employer is able to rely on the IRS-issued opinion letter that the plan document meets all qualification requirements for a ______ plan.
Opinion letter, boilerplate, written plan.
101
Under the current _______ procedure for pre-approved plans, these documents must be amended for ______ and _______ changes approximately every six years. All defined contribution pre-approved plans are on one cycle, and all defined benefit pre-approved plans are on a different cycle. The IRS ______ the due dates for the restatements as they arise.
restatement, legislative and regulatory, publishes
102
______ requires that participants be provided with information that ______ them regarding the terms of the plan and the participants’ enforcement rights under ERISA. The primary tools for providing this information are the _______ ____ _______ (SPD) and the _______ __ _______ _______ (SMM)
Title I, Advises, Summary Plan Description, Summary of material modifications
103
The ______ ____ ______ (SPD) is a primary _______ document reuqired by Title I of ERISA. Through the SPD, the participants and beneficiaries are given information about the _______ provisions of the plan, how they make a claim for benefits and what their rights are under ERISA. The plan ______ is required to furnish the SPD to each participant covered under the plan and to each beneficiary receiving benefits under the plan.
Summary Plan Description, disclosure, material, administrator
104
ERISA and ___ regulations outline the information that must be included in the SPD and the manner in which it must be presented. The SPD must be written in a manner that is reasonably expected to be understood by the _______ plan participant. The plan administrator must consider the level of comprehension and education of the typical plan participants and the complexity of the terms of the plan. _______ jargon and long, complex sentences should not be used. The DOL encourages the use of examples and illustrations to explain the terms of the plan, clear cross-references and a table of contents. The DOL is especially concerned that any ______, reductions or restrictions on plan benefits are described in no less prominent style than that used to describe the plan benefits.
DOL, average, technical, limitations
105
The information that must be included in the SPD includes:
* Identifying information about the plan, the employer, and the ______;
* The requirements for ______;
* How ______ accrue;
* _____ requirements;
* When _______ are available;
* The forms of ______ available;
* How to make a ______ for benefits;
fiduciaries, eligibility, benefits, Vesting, Distributions, payment, claim
106
The information that must be included in the SPD includes:
* Description of the circumstances which may result in disqualification, ______, or denial;
* A clear explanation of a participant’s _______ rights under ERISA (a sample of which is provided by the DOL in the regulation);
* If the plan is intended to be covered by ERISA §____, a statement that it is “an ERISA section _____ plan”;
* A description of the plan’s _____ procedures or a statement that participants and beneficiaries may receive them without charge from the plan administrator;
* Details regarding the effect of a plan ______ on a participant’s rights under the plan; and
* The regulation provides for _______ content requirements for retired participants, separated participants with vested benefits and beneficiaries receiving benefits from the plan.
ineligibility, enforcement, 404(c). 404(c), QDRO, termination, simplified
107
A participant must receive the SPD by not later than __ days after he or she first becomes a participant. If the plan is a new plan, the __-day deadline is extended so that the SPD must be provided by not later than ____ days after the later of the effective date or the adoption date of the plan.
90,90,120
108
If a participant quits or is otherwise ______ and later is rehired by the employer, the plan is not automatically required to furnish an ____ to the employee. However, this rule depends on the participant’s status as a result of the termination of employment. If the individual was paid his or her ______ vested benefit during the period of termination, that individual is treated as a new participant when he or she recommences participation, and the SPD must be provided. Conversely, if any portion of the vested benefit remains ______ as of the rehire date, no SPD needs to be furnished.
terminated, SPD, entire, undistributed
109
A _______ is not required to receive an SPD until __ days after he or she begins to receive benefits from the plan. The beneficiary is not considered to have an ______ interest in the plan until an event occurs that entitles the beneficiary to receive benefits, so there is no need to provide the SPD earlier. If there is a QDRO, the alternate ______ is considered to be the beneficiary.
beneficiary, 90, enforceable, payee
110
Every ______ year, the SPD must be updated, unless there have been no ______ made to the plan during that period that would affect the SPD’s contents. Every ______ year, the SPD must be updated, regardless of whether amendments have been made. An updated SPD must be provided to participants and to beneficiaries receiving benefits by not later than ___ days following the close of the plan year for which the SPD is updated. The latest SPD and required ______ __ _______ ______ (see below) must be provided to the beneficiaries, retired participants and separated participants, along with a statement of their benefit rights and the right to receive the updated SPD upon request.
fifth, amendments, tenth, 210, summaries of material modification.
111
The primary means of enforcement of the SPD disclosure rules include _____, court enforcement and ______ penalties.
audit, criminal
112
A summary of material modifications (SMM) is required when there has been a ______ ______ to the plan or when the information provided in the summary plan description (SPD) has changed. The summary must explain the amendment or change in a manner that can be reasonably _______ by the average participant.
material modification, understood
113
The plan administrator must provide a copy of the SMM to each participant and each beneficiary who is receiving benefits under the plan by not later than ___ days after the close of the plan year in which the amendment was adopted. Note that this means that the date of adoption for an amendment that has an effective date that is ______ to an earlier year will control the due date of the SMM, not the effective date of the amendment.
210, retroactive
114
If a participant or beneficiary is receiving the SPD for the first time, any previously prepared SMMs that describe _______ that have not yet been incorporated into the SPD should accompany that SPD. No SMM is required if the change is _______ into an SPD that is delivered to participants prior to the deadline of the SMM.
amendments, incorporated
115
The ______ do not describe what amendments or changes are considered material. Common sense should prevail here. If in doubt, the plan administrator should err on the side of ______.
regulations, disclosure
116
Examples of changed provisions that should be disclosed in an SMM include: a) ______ and/or vesting provisions;
b) Allocation or _______ formula;
c) Conditions for accruing benefits or receiving an ______;
d) ______ options;
e) New ______, plan administrator, employer sponsor or other named fiduciary;
f) Participant ____ program; g) Adoption of a 401(k) arrangement or an _____-___ employee contribution feature;
h) Adoption of a participant-directed _______ option; or
i) Benefit ______ procedures
Eligibility, benefit, allocation, distribution, trustees, loan, after-tax, investment, claims
117
_______ contains the labor law provisions. Title I is enforced by the ____
Title 1, DOL
118
_______ contains the tax laws associated with retirement plans. These are enforced by the ______ __ _______.
Title II, Department of Treasury
119
_______ divides the responsibilities of enforcement between the ______ __ ______ and ___.
Title III, Department of Treasury and the DOL
120
______ applies only to ______ _______ plans. It created the government agency that ______ a participant's benefits in employer-sponsored pension plans.
Title IV, Defined Benefit,gurantees
