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65 Cards in this Set
- Front
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Which of the following statements regarding plan qualification under IRC §401(a) is/are TRUE? I. A defined contribution plan must satisfy the minimum participation requirements of IRC §401(a)(26). II. A qualified plan may permit the assignment of benefits in limited circumstances. III. The failure to make RMDs under IRC §401(a)(9) could disqualify the plan. A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
D Defined contributions are not subject to the minimum participation requirements of IRC §401(a)(26). A participant's accrued benefit is protected from assignment or alienation, however, there are some exceptions to the antiassignmentrule such as participant loans and QDROs. The consistent failure of a plan to make RMDs under IRC §401(a)(9) could disqualify a plan. ( |
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Which of the following is/are types of situations that may cause a plan to be disqualified? I. Operational failures II. Demographic failures III. Plan document failures A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
E All of these situations may cause a plan to be disqualified |
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Which of the following statements regarding correction programs is/are TRUE? I. The violation must not involve misuse or diversion of assets for a qualified plan to be able to correct a significant failure under SCP. II. SCP involves no disclosure or fees to the IRS. III. Any VCP submission may be made as an anonymous submission. A. I only B. II only C. I and III only D. II and III only E. I, II and III |
E If a qualification failure involves the diversion or misuse of plan assets, relief under any of the EPCRS programs is not available, noteven under Audit CAP. The Self-Correction Program (SCP) is a self-initiated correction program for resolving operational failures. It involves no disclosure orfees to the IRS. The Voluntary Correction with IRS Approval Program (VCP) is a self-initiated program for fixing qualification failures. However, incontrast to SCP, VCP requires disclosure to the IRS and a payment to the IRS (called a VCP compliance fee). Any VCP submissionmay be made as an Anonymous Submission, regardless of the type of plan (qualified plan, 403(b) plan, SEP, SIMPLE IRA plan) or thetype of failure (operational failure, demographic failure, plan document failure, employer eligibility failure). |
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Which of the following statements regarding Audit CAP is/are TRUE? I. The employer must agree to correct the violation. II. The employer must pay a sanction. III. The employer must sign a closing agreement with the IRS. A. I only B. III only C. I and II only D. II and III only E. I, II and III |
E All three statements are true. The Audit Closing Agreement Program (Audit CAP) arises when qualification failures are found in anIRS examination of the plan, and the violation is not an insignificant operational failure that is eligible for relief under SCP. The IRSexamination may arise as part of either an audit or a review in connection with a favorable determination letter application. To obtainrelief under Audit CAP, the employer must agree to correct the violation, pay a sanction, and sign a closing agreement with the IRS. |
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All of the following statements regarding plan documents are TRUE, EXCEPT: A. A volume submitter plan consists of a specimen plan and incorporates all possible operational provisionsthat may be used in that specimen plan. B. An M&P plan must be maintained by a sponsoring organization. C. An M&P plan consists of a basic plan document and a trust document. D. A trust document may be separate from the plan document. E. A trust document may be incorporated within the plan document. |
C A masteror prototype (M&P) plan consists of a basic plan document and an adoption agreement |
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All of the following statements regarding the IRS submission process are TRUE, EXCEPT: A. Unless for a minor amendment, submissions must include a copy of the plan document. B. Attorneys qualify as designated representatives on Form 2848. C. The plan sponsor is required to notify interested parties regarding a plan’s submission for a determinationletter. D. The IRS charges a user fee for reviewing a plan for a favorable determination letter. E. Certified pension consultants (CPCs) qualify as designated representatives on Form 2848. |
E CPCs do not qualify as designated representatives on Form 2848. Only attorneys, CPAs, enrolled agents, enrolled actuaries andenrolled retirement plan agents (ERPAs) may be designated as representatives under Form 2848. |
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All of the following statements regarding money purchase pension plans are TRUE, EXCEPT: A. The IRS imposes a nondeductible excise tax on the employer for failure to make the required contributionunder IRC §412. B. The formula for determining the amount of the contribution and the formula for allocating the contributionmay be different. C. The annual contribution must be determined by a formula specified in the plan document. D. Participant loans may be permitted. E. Hardship withdrawals may be permitted. |
E Pension plans (e.g., money purchase pension plans) do not permit hardship withdrawals. |
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All of the following statements regarding allocation of contributions and forfeitures in a defined contribution plan are TRUE, EXCEPT: A. A pension plan must have a definite formula for allocating employer contributions. B. A nonpension plan is not required to have a definite formula for allocating employer contributions. C. Forfeitures may be used to reduce the employer's contribution. D. Forfeitures may be used to provide additional allocations for participants. E. An employer contribution may be allocated on the basis of compensation and include other criteria such asage or service. |
B A pension plan is required to have “definitely determinable benefits.” In other words, there must be either a formula for determiningthe participant’s benefit at retirement or a definite formula for determining the company’s annual contribution to the plan. Anonpension plan need not satisfy the definitely determinable benefits requirement that applies to pension plans, but a nonpensionplan must provide for a definite allocation formula, which outlines the method by which the employer’s contribution is allocated amongthe plan participants’ accounts once that contribution is made to the plan |
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Based on the following information, determine when Employee A will enter the plan: ---The plan year begins on July 1 and ends on June 30. ---The eligibility requirements are one year of service and attainment of age 21. ---Employee A’s date of hire is April 15, 2014. ---Employee A’s date of birth is August 1, 1994. ----Employee A is a full-time employee. --The entry date is the earlier of July 1 or January 1 following the date the eligibility requirements are satisfied. A. January 1, 2015 B. July 1, 2015 C. August 1, 2015 D. January 1, 2016 E. July 1, 2016 |
D Employee A is age 21 on August 1, 2015. Employee A has one year of service on April 14, 2015. The later of these two dates isAugust 1, 2015. Employee A enters the plan on January 1, 2016, the first entry date after August 1, 2015. |
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Which of the following statements regarding eligibilty computation periods is/are TRUE? I. The first eligibility computation period may be defined as ending on the last day of the plan year. II. The eligibility computation period must be a period of 12 consecutive months. III. The second eligibility computation period may be defined as the 12-month period following the participant’s date of birth. A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
B An eligibility computation period is the period during which an employee’s hours are examined to determine whether a year of servicehas been completed. The eligibility computation period must be a period of 12 consecutive months. The first eligibility computation period must begin on the employee’s employment commencement date. Eligibility computation periodsafter the first such period may be defined as either: (a) the plan year; or (b) 12-month anniversary periods of the initial eligibility computation period. The plan must define which method it will use to determine eligibility computation periods after the first period. No other method isacceptable in determining whether the statutory requirements are satisfied. |
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Which of the following statements regarding eligibilty computation periods is/are TRUE? I. The plan may use a short plan year as an eligibility computation period. II. The intial eligibility computation period must begin on an employee’s employment commencement date. III. The eligibility computation period may be defined as the 12-month anniversary period following the first computation period. A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
D An eligibility computation period is the period during which an employee’s hours are examined to determine whether a year of servicehas been completed. The eligibility computation period must be a period of 12 consecutive months. A short plan year may not beused. The first eligibility computation period must begin on the employee’s employment commencement date. Eligibility computation periodsafter the first such period may be defined as either: (a) the plan year; or (b) 12-month anniversary periods of the initial eligibility computation period. The plan must define which method it will use to determine eligibility computation periods after the first period. No other method isacceptable in determining whether the statutory requirements are satisfied |
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A plan may exclude each of the following categories of employees from plan participation, EXCEPT: A. Seasonal employees B. Executive officers C. Employees who terminated prior to reaching the plan’s entry date D. Staff employees under Division X E. Janitorial staff |
A A plan may exclude select classifications of employees from participation in the plan. If these types of exclusions are used, specialtesting applies under IRC §410(b) to show that the plan satisfies the coverage requirements. An employer is not permitted, eitherspecifically or indirectly, to create a job category for the purpose of excluding participants who have not completed eligibilityrequirements that exceed the statutory requirements, even if the coverage rules are met when these individuals are excluded. In addition, a plan may not impose any eligibility conditions that on the surface appear to be unrelated to age or service, but in realityare age or service conditions that violate the minimum age or service standards prescribed by the statute. Exclusion of part-timeemployees or seasonal employees by category is an impermissible service condition, if the term part-time employee is defined on thebasis of a customary work schedule (such as, less than 20 hours per week). This is because the exclusion relates solely to theemployee’s service. Under the one year of service definition, it is possible that a part-time or seasonal employee could be creditedwith enough hours of service to earn a year of service. |
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All of the following statements regarding eligibility requirements are TRUE, EXCEPT: A. Employees may be required to work two years of service before becoming eligible for a matchingcontribution. B. A plan may have different eligibility conditions for different groups of employees. C. A plan with age 21 and one year of service eligibility requirements may waive those requirements foremployees employed when the plan was first established. D. A money purchase pension plan may require two years of service for eligibility. E. A plan amendment that changes the eligibility requirement must grandfather in existing participants |
E Plan amendments changing eligibility requirements often grandfather in existing participants, but it is not a requirement to do so. |
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Which of the following statements regarding a break in service for eligibility purposes is/are TRUE? I. A plan is required to impose a break-in-service rule. II. A reduced work schedule may cause an employee to incur a break in service. III. A break in service may affect the date in which a rehired former participant may re-enter the plan. A. I only B. II only C. I and III only D. II and III only E. I, II and III |
D A plan is not required to impose a break-in-service rule |
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All of the following statements regarding the effect of changing a plan’s eligibility requirements from three months of service to oneyear of service are TRUE, EXCEPT: A. Existing participants must be allowed to continue participation, even if they haven’t satisfied the neweligibility conditions. B. Existing participants’ accrued benefits are protected. C. Rehired former participants may need to satisfy the new requirements before re-entry. D. Existing participants who have already satisfied the new eligibility conditions continue to participate. E. The right to continue to participate in a plan is not a protected benefit. |
A It is not required that existing participants be allowed to continue participation if they have not satisfied the new eligibility conditions. When the eligibility conditions are amended, the plan may (but is not required to) provide that the existing participants aregrandfathered in, meaning that their participation continues even if they cannot satisfy the new eligibility conditions. If the eligibilityrequirements are modified in a way that the employee is no longer satisfies the requirements for participation, the participant’saccrued benefit is protected, but the employee will not accrue additional benefits until he or she first re-establishes the right toparticipate in the plan under the modified eligibility requirements. A change in eligibility requirements may affect the re-entry of a rehired employee who was formerly a participant in the plan. Unlessthe amendment grandfathered in former participants, the rehired employee would have to satisfy the new requirements before his orher participation could resume. The modification of the plan’s eligibility service condition will not cause an employee to lose participant status if the employee hasalready satisfied the new requirement. Just because an employee qualifies as a participant in the plan does not guarantee theemployee the right to participate in the plan for the rest of his or her employment with the employer. The right to continue toparticipate in a plan is not a protected benefit. |
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Based on the following information, determine the HCEs for 2015: Employees A and B are married.The top-paid group election is not made EE 14' comp 14' owner 15' comp 15' owner A $50,000 80% $55,000 75% B $80,000 0% $85,000 0% C $225,000 0% $250,000 15% D $70,000 20% $75,000 10% E $10,000 0% $125,000 0% A. Employees A, B and D only B. Employees A, C and D only C. Employees A, B, C and D only D. Employees A, C, D and E only E. Employees A, B, C, D and E |
C An employee is an HCE in 2015 if they are a more than 5% owner in 2014 or 2015, or if they earn more than $115,000 in 2014.Employees A, B, C and D satisfy the ownership requirements. Employees A and C also satisfy the compensation requirement. Note,while Employee B is not a direct owner, Employee B is attributed ownership through marriage to Employee A. Employee E will not bean HCE until 2016 since compensation earned during the current plan year is not considered when determining HCE status. |
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Which of the following statements regarding the calendar year data election is/are TRUE? I. The election applies to determine the lookback year for the 5 percent owner test. II. The election applies to determine the lookback year for the compensation test. III. The election must be reflected in the document if the plan contains an HCE definition. A. I only B. II only C. I and III only D. II and III only E. I, II and III |
D A calendar year data election affects the calculation of the lookback year. If the election is made, the lookback year is the calendaryear that begins in the 12-month period preceding the current plan year. The election may be made only for a noncalendar yearplan. The calendar year data election applies only to determine the lookback year for the compensation test and does not apply todetermine the HCEs under the 5 percent owner test. The calendar year data election must be reflected in the document only if a planotherwise contains an HCE definition. If a plan does not include a definition of HCE, the calendar year data election may be madeoperationally. |
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All of the following are HCEs within the meaning of IRC §414(q), EXCEPT: A. The grandson of a 25% owner B. A sole proprietor C. A 10% owner in an S Corporation D. A 15% partner in a partnership E. The wife of a 30% owner |
A A grandchild’s ownership interest is attributed under IRC §318 to that individual’s grandparent. However, a grandparent’s ownershipinterest is not attributed under IRC §318 to that individual’s grandchild. |
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Based on the following information, determine the number of employees in the top-paid group for purposes of identifying HCEs forthe 2015 calendar year: The table below contains 2014 plan year information.There are a total of 50 employees.No employee in the table below is counted more than once More then 5% owner 2 EE under age 21 3 part-time EE with 20hrs per week 15 seasonal EE works 4 months a year 7 full time non-owner EE over age 21 23 total employees 50 A. 2 B. 4 C. 6 D. 8 E. 10 |
D The employer may elect to (but is not required to) limit the number of employees who can be treated as satisfying the compensation test for HCEdetermination purposes. Under the top-paid group election, an employee would satisfy the compensation test only if: • the employee was in the top 20 percent of employees for the lookback year, ranked by compensation; and• the employee’s compensation for such prior year was in excess of the required dollar amount. The 2015 top-paid group election is based on the number of employees in the 2014 lookback year. To determine the maximumnumber in the top-paid group, the 20 percent limitation is applied to the total number of employees, disregarding certain excludedemployees. The employees excluded from being counted as part of the number of employees in the top-paid group are:• employees who have not completed at least six months of service by the end of the year;• employees who normally work less than 17½ hours per week;• employees who normally work less than six months per year; and• employees younger than 21. In this example, the three employees under age 21 and the seven seasonal employees who normally work less than six months peryear may be excluded. The number of employees in the top-paid group (50 – 3 – 7) x 20% = 8. |
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Based on the following information, determine the top-heavy ratio as of December 31, 2015: EE KEY 12/31/15 blnc Term Distri paid A yes $60,000 $0 A. $70,000 / $170,000 B. $70,000 / $235,000 C. $110,000 / $199,000 D. $150,000 / $220,000 E. $150,000 / $235,000 |
B First, determine the participants included. Include those with at least one hour of service in the determination year (2015). ParticipantG is not included in any of the top-heavy calculations. Next determine which distributions need to be included. Participant B’s in-service distribution ($50,000) is included since it occurredduring the five year period ending on the determination date. Participant F’s termination distribution ($15,000) is included since itoccurred during the determination year. The numerator is the key employee balances ($60,000 + $10,000) and the denominator is all includable employee balances($60,000 + $40,000 + $10,000 + $35,000 + $25,000) plus the includable distributions ($50,000 + $15,000). The denominator totals$235,000. The top-heavy ratio is ($70,000 / $235,000). |
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All of the following statements regarding top-heavy plans are TRUE, EXCEPT: A. Top-heavy plans are subject to minimum vesting requirements. B. Top-heavy minimum contributions are allocated based on compensation from the participant’s date of entry. C. A SEP is subject to top-heavy rules. D. Account balances from after-tax employee contributions are included in the top-heavy determination. E. The determination date for a newly established 401(k) plan is the last day of the first plan year. |
B Compensation for purposes of determining top-heavy minimum allocations is IRC §415 compensation. IRC §415 compensationincludes compensation from the beginning of the plan year, rather than from the participant’s date of entry. |
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Based on the following information, determine the key employees as of December 31, 2015: None of the employees are related.Ownership and compensation are the same for the current and prior year. EE Ownership officer compensation A 86% no $200,000 B 8% yes $180,000 D 2% yes $100,000 E 0% yes $90,000 A. Employee A only B. Employee B only C. Employees A and B only D. Employees A, B and C only E. Employees A, B, C, D and E |
D An employee is a key employee if they are a more than 5% owner, if they are a more than 1% owner and have compensation inexcess of $150,000, or if they are an includible officer satisfying the compensation test. An employee is a key employee if: they are a more than 5% owner;they are a more than 1% owner and have compensation in excess of $150,000 (This $150,000 compensation requirement is notindexed for cost-of-living increases.); orthey are an includible officer satisfying the compensation test ($170,000 for 2014 and 2015). Employees A and B are more than five percent owners. Employee C is a more than one percent owner with compensation in excessof $150,000. |
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Based on the following information, determine the amount that must be deposited into the plan in order to satisfy the requiredminimum top-heavy contribution for the non-key employees: All contribution sources, as permitted by law, may be used to satisfy the required top-heavy minimum contribution.The plan document does not limit the use of particular contributions for this purpose.The contributions included in the following chart have already been deposited into the plan. EE comp Elect-contr catchup matching key $200,000 $10,000 $5,000 $2,500 N/K $75,000 $1,500 $0 $375 N/K $60,000 $0 $0 $0 A. $3,675 B. $4,050 C. $5,025 D. $5,400 E. $10,050 |
A The minimum required top-heavy contribution is 3% of the total non-key compensation. To determine the amount to be deposited, theminimum required top-heavy contribution should be reduced by any employer contributions that are eligible to be used towardsatisfying the requirement. The total non-key compensation is $135,000 ($75,000 + $65,000). $135,000 x 3% = $4,050. $4,050 –$375 in employer matching contributions = $3,675 to be deposited. The top-heavy minimum must be satisfied with employer contributions and/or forfeitures. Employer contributions include nonelectiveprofit sharing contributions, pension contributions, matching contributions, QNECs, QMACs, safe harbor matching contributions andsafe harbor nonelective contributions. Note that it is permissible for plan documents to limit the use of certain contributions for topheavyminimum purposes. For example, a plan sponsor may elect in the plan document that matching contributions are not to beused toward satisfying the top-heavy minimum. That is not the case in this particular example |
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Which of the following types of plans covering at least one key employee is/are subject to aggregation for top-heavy purposes? I. SEP plan II. SIMPLE IRA plan III. SIMPLE 401(k) plan A. I only B. II only C. I and III only D. II and III only E. I, II and III |
A Any qualified plan or SEP is subject to aggregation for top-heavy purposes. SIMPLE IRA or SIMPLE 401(k) plans are not subject toaggregation for top-heavy purposes, as they are both exempt from the top-heavy rules. If a SIMPLE 401(k) plan is later converted toa regular 401(k) plan or is replaced by another type of qualified plan, the converted or replaced plan would be includible in therequired aggregation group if it covered a key employee. |
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Based on the following information, determine the number of employees in the benefiting group for coverage testing under IRC§410(b): The plan is a calendar year profit sharing plan.All employees have satisfied the plan’s initial eligibility requirements.There are no allocation requirements for the profit sharing contribution. total nonexcld EE 100 nonexcld active EE with more 1000 hrs 86 nonexcld active EE few then 1000 hrs 4 nonexcld EE term with more 500 hrs 8 nonexcld EE term with fewer 500 hrs 2 A. 86 B. 90 C. 92 D. 98 E. 100 |
E The benefiting group consists of the employees in the coverage testing group who benefit from the plan for the plan year. Anemployee benefits under a defined contribution plan if his or her account balance receives an allocation of employer contributions orforfeitures for the plan year. The plan in this example has no allocation requirements and every employee has satisfied the initial eligibility requirements. Thus,every employee will benefit and will be included in the benefiting group. Note that the coverage testing exclusion of terminatedparticipants with 500 or fewer hours of service does not apply unless a plan has allocation requirements (e.g., 1,000 hours of serviceor employment on the last day of the plan year as a condition to receive a contribution allocation). |
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Based on the following information, determine the minimum number of NHCEs that must benefit under the plan to satisfy the ratiopercentage test under IRC §410(b): --ABC Company sponsors a profit sharing plan. --Plan eligibility requirements are age 21 and one year of service. --ABC Company would like to exclude a class of employees that work in a particular warehouse. --There are 10 nonexcludable HCEs of which 6 are benefiting under the plan. --There are 200 NHCEs of which 50 are under age 21 and another 50 have completed less than one year of service. A. 0 B. 6 C. 42 D. 70 E. 140 |
C The question provides the number of nonexcluable HCEs, but the number of nonexcludable NHCEs must be determined. Of the 200total NHCEs, only 100 met the eligibility requirements (200 total NHCEs – 50 NHCEs under age 21 – 50 NHCEs with less than oneyear of service). The HCE ratio is 60% ( 6 benefiting HCEs / 10 nonexcludable HCEs). In order to pass the ratio percentage, 70% of the NHCEs, as compared to the percentage of HCEs must benefit. Since the HCE ratiois only 60%, only 42% of the nonexcludable NHCEs must benefit to achieve a plan ratio percentage of 70% ( 60% HCE ratio x 70% =42% needed NHCE ratio). 42% of the nonexcluable NHCEs is 42 (100 x 42%). |
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Which of the following is/are groups of employees that may be excluded by statute from the coverage testing group under IRC§410(b)? I. Employees who satisfy the plan's age and service requirements, but are ineligible due to a job category exclusion II. Employees who fail to satisfy the plan's age and service requirements III. Nonresident aliens who receive no US source income from the employer A. I only B. II only C. I and III only D. II and III only E. I, II and III |
D Employees who satisfy the plan's age and service requirements, but are ineligible due to a job category exclusion are included in thetesting group as not benefiting. |
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All of the following groups of employees may be excluded by statute for coverage testing under IRC §410(b), EXCEPT: A. Seasonal employees who work only 6 months each year B. Nonresident aliens with no earned income from sources within the United States C. Employees covered by a collective bargaining agreement where retirement benefits are the subject of goodfaith bargaining D. Employees who do not satisfy the age and service requirements of the plan E. Nonbenefiting participants who terminated with fewer than 500 hours of service |
A Excludable employees are those that do not satisfy the plan’s age and service requirements, are not benefiting and terminate with500 or fewer hours of service (provided the plan has allocation requirements to receive a contribution), are collectively bargained orare nonresident aliens. Seasonal employees are not excludable specifically by statute. |
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Which of the following is/are plan designs that satisfy the minimum coverage requirements of IRC §410(b)? I. A plan that benefits only HCEs and excludes NHCEs II. A plan that benefits 30% of the NHCEs and excludes HCEs III. A plan that benefits all NHCEs and 50% of the HCEs A. I only B. II only C. I and III only D. II and III only E. I, II and III |
D A plan that benefits only HCEs and excludes NHCEs will not satisfy the minimum coverage requirements if there are any NHCEs thatmeet the eligibility requirements for the plan. In contrast, a plan that excludes HCEs would satisfy the minimum coverage requirements regardless of how many HCEs met theeligibility requirements or the percentage of NHCEs benefiting. If there are no HCEs benefiting under the plan, the plan is deemed tosatisfy coverage for the plan year. A plan that benefits all NHCEs and 50% of the HCEs would satisfy the minimum coverage requirements with a plan ratio percentage of200%. 100% NHCE ratio percentage / 50% HCE ratio percentage = 200%. This is well above the 70% ratio needed to satisfy the ratiopercentage test |
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Which of the following is/are acceptable correction methods for a plan that fails to satisfy minimum coverage testing under IRC§410(b)? I. Adjust contribution amounts that have already been allocated and reallocate the contribution amount II. Adopting a corrective amendment up to 9½ months after the close of the plan year III. Expand the group of HCEs who benefit under the plan A. I only B. II only C. I and III only D. II and III only E. I, II and III |
B An employer may correct a coverage failure by adopting a corrective amendment up to 9½ months after the close of the plan year.The corrective amendment may cure the coverage defects by expanding the group of NHCEs who benefit under the plan or byincreasing the allocations or accruals for NHCEs who already benefit under the plan. A plan may not adjust contribution amounts thathave already been allocated and reallocate the contribution amount. Amounts already allocated are protected from reduction underthe anti-cutback rules of IRC §411(d)(6). Expanding the group of HCEs who benefit under the plan will only exacerbate the testingfailure. |
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Which of the following statements regarding plan qualification under IRC §401(a) is/are TRUE? I. Coverage testing must be performed separately for the 401(k) portion, the 401(m) portion and the 401(a) portion. II. Employees who have not satisfied the plan’s age and service requirements for the portion being tested are included as notbenefiting. III. The benefiting group includes only the employees who benefit under the disaggregated portion of the plan being tested. A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
C Employees who have not satisfied the plan’s age and service requirements for the portion being tested are excluded from thecoverage testing for that portion of the plan. |
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Based on the following information, determine the number of NHCEs that must benefit under the plan to pass the ratio percentagetest under IRC §410(b): XYZ Company sponsors a calendar year profit sharing plan.The plan eligibility requirements are age 21 and one year of service.XYZ Company has two divisions and would like to exclude Division B employees from the plan. total nonexcld HCEs 16 total benefiting HCE 8 total NHCE 150 total NHCE under age 21 20 total NHCE over 21 with one year service 25 A. 37 B. 47 C. 53 D. 74 E. 105 |
A Only employees who satisfy the plan eligibility requirements are included in the ratio percentage test. The question provides thenumber of nonexcludable HCEs, but the number of nonexcludable NHCEs must be determined Of the 150 total NHCEs, only 105 met the eligibility requirements (150 total NHCEs – 20 NHCEs under age 21 – 25 NHCEs with lessthan one year of service). The HCE ratio is 50% (8 benefiting HCEs / 16 nonexcludable HCEs). In order to pass the ratio percentage 70% of the NHCEs, as compared to the percentage of HCEs must benefit. Since the HCE ratio isonly 50%, only 35% of the nonexcludable NHCEs must benefit to achieve a plan ratio percentage of 70% (50% HCE ratio x 70% =35% needed NHCE ratio). 35% of the nonexcludable NHCEs is 37 (105 x 35%). |
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Based on the following information, determine the employer contribution for the 2015 plan year: The plan is a calendar year profit sharing plan and is the only plan of the employer.The plan uses a pro rata allocation formula.The employer contribution is 6% of eligible compensation.Contributions are allocated to participants who worked at least 1,000 hours during the plan year and who are employed on thelast day of the plan year.The IRC §401(a)(17) compensation limit in 2015 is $265,000.The plan satisfies coverage requirements.The plan is not top-heavy. EE compensation hours worked status A $50,000 2,080 active F $25,000 250 terminated A. $31,200 B. $33,900 C. $46,800 D. $47,100 E. $48,600 |
A Participants D and E are not eligible to receive an allocation for the plan year as they fail to meet the allocation conditions. ParticipantA’s compensation must be limited to the IRC §401(a)(17) limit amount of $265,000. Total includable compensation is $520,000($265,000 + $150,000 + 55,000 + $50,000. The profit sharing contribution is $31,200 ($520,000 x 6%). ( |
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All of the following statements regarding compensation are TRUE, EXCEPT: A. IRC §414(s) compensation must be used for ADP testing. B. IRC §414(s) compensation must be used for permitted disparity allocations. C. IRC §415 compensation must be used for allocating employer contributions. D. IRC §415 compensation must be used for allocating top-heavy minimum contributions. E. IRC §415 compensation definitions meet the safe harbor standards of IRC §414(s) compensation. |
C Plans are not required to use IRC §415 compensation when allocating employer contributions |
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All of the following are annual additions under IRC §415, EXCEPT: A. Catch-up contributions B. Forfeiture allocations C. Employer matching contributions D. After-tax employee contributions E. QNECs |
A IRC §415 limitations are applied to the annual additions allocated to the participant’s account for the limitation year. Annual additionsare:• Employer contributions [including elective deferrals under a 401(k) plan, matching contributions and nonelective contributions];• Forfeitures allocated to the participant’s account; and• Employee contributions (i.e., after-tax employee contributions). Loan repayments, investment earnings and catch-up contributions are not included in annual additions |
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Which of the following statements regarding excess annual additions under IRC §415 is/are TRUE? I. A failure to limit annual additions may cause the plan to be disqualified. II. A plan sponsor needs to use correction methods outlined in EPCRS to correct excess annual additions. III. There is no specific deadline for correcting excess annual additions. A. I only B. II only C. I and III only D. II and III only E. I, II and III |
E All of the statements regarding excess annual additions under IRC §415 are true |
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Which of the following is/are conditions that may be imposed on a participant in order to receive a contribution allocation? I. Work 501 hours during a short plan year II. Work 1,000 hours during a short plan yearIII. Work 1,000 hours during a calendar year A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
E A common accrual requirement in a defined contribution plan is that the participant must satisfy a minimum hours-of-servicerequirement for the plan year. This minimum requirement may not exceed 1,000 hours. Because an hours requirement for allocationpurposes is a plan design issue and is not required by statute or regulation to be in the plan, there is no legal rule that demandsproration of the hours requirement for short plan year. Thus, a plan may impose a 501 or even 1,000 hours of service requirementduring a short plan year in order for participants to receive a contribution allocation. |
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Which of the following statements regarding deduction limits rules is/are TRUE? I. Compensation used to determine deduction limits includes taxable fringe benefits. II. Forfeiture allocations made to participants in a plan year reduce an employer’s overall deduction limit. III. Compensation used to determine deduction limits is based on the employer’s tax year. A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
C Forfeiture allocations made to participants in a plan year do not reduce an employer’s overall deduction limit. Forfeitures represent benefits that are reallocated from one participant's account (i.e., the person forfeiting the benefit) to theaccounts of the other participants. The employer already received a deduction for the amounts that generated the forfeitures in aprior year. Thus, they do not reduce the employer's deduction limit in the current year. |
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Based on the following information, determine the contribution deadline for a deductible contribution made for the 2015 plan year: --The plan is a calendar year plan. --The plan sponsor is an LLC taxed as a corporation. --The corporate return is not on extension. A. December 31, 2015 B. March 15, 2016 C. April 15, 2016 D. September 15, 2016 E. October 15, 2016 |
B The contribution deadline applicable to an LLC taxed as a corporation is 2½ months following the end of the plan year; in thisexample March 15, 2016. |
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Based on the following information, determine the maximum deductible discretionary profit sharing contribution that may be made tothe following 401(k) plan: total compensation of eligible EE $2,000,000 total elective contribution $100,000 total employer matching $50,000 A. $235,000 B. $425,000 C. $450,000 D. $475,000 E. $500,000 |
C The deduction limit is 25% of eligible compensation or $2,000,000 * .25 = $500,000. Since $50,000 of the deduction limit has alreadybeen used towards employer matching contributions, $450,000 is the maximum deductible profit sharing contribution that may bemade for the year ($500,000 - $50,000). |
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All of the following statements regarding the excise tax on nondeductible contributions are TRUE, EXCEPT: A. Nondeductible contributions may be subject to a 10% excise tax. B. Contributions must be withdrawn from the plan no later than 90 days from the date made to avoid an excisetax. C. The excise tax is applicable in subsequent years if the nondeductible contribution has not been deducted inthe subsequent year. D. Obtaining an extension for filing Form 5500 does not automatically extend the date for payment of theexcise tax. E. The excise tax is not deductible by the employer. |
B Nondeductible contributions may not be withdrawn from the plan in order to avoid the 10% excise tax. The exclusive benefit ruleprecludes an employer contribution from being returned merely because it exceeds the deduction limit. A contribution may bereturned only under limited circumstances—mistake of fact, formal IRS disallowance of the deduction, or failure for the plan to qualifyfrom its inception. The IRS ruled that the mere nondeductibility of a contribution is not a mistake of fact. |
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Based on the following information, determine the participant’s vested balance as of December 31, 2015: The plan year is the calendar year.The plan is using the counting-hours method to determine vested service.A year of service for vesting purposes is a plan year with at least 1,000 hours.Years of service before age 18 are excluded.Participant A’s date of birth is March 15, 1994 and date of hire is December 15, 2009.Participant A worked 1,000 hours in plan years 2010 through 2014, but fewer than 1,000 hours in 2015.The vesting schedule is the six-year graded schedule.The vesting computation period is the plan year. Account Account Balance Elective contribution $1,750 Matching contribution $525 EE nonelective contribution $3,250 QMAC $450 Rollover $5,750 A. $7,950 B. $9,190 C. $9,460 D. $10,970 E. $11,725 |
C Participant A has five years of service (2010, 2011, 2012, 2013 and 2014). However, years of service before age 18 are excluded forvesting purposes. Participant A attained age 18 in 2012. Thus, Participant A has three years of vesting service for plan purposes(2012, 2013 and 2014). This translates to 40% vesting, applicable to the matching and employer nonelective sources. The vestedbalance is $1,750 + ($525 *.40) + ($3,250 * .40) + $450 + $5,750 = $9,460 |
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Based on the following information, determine Participant A’s vested percentage as of December 31, 2015: --The plan year and vesting computation period is the calendar year. --The plan uses the six-year graded vesting schedule. --The plan is using the counting hours method to determine vested service. --Participant A is a full-time employee. --Participant A was 60% vested as of December 31, 2013. --Participant A terminated employment on March 14, 2014. --Participant A was rehired on May 1, 2015. A. 20% B. 40% C. 60% D. 80% E. 100% |
Based on a six-year graded vesting schedule, Participant A is 80% vested as of December 31, 2015. As of December 31, 2013 (the end of the plan year prior to terminating employment), Participant A was 60% vested. Participant A didnot earn a year of vesting credit during 2014. As a full-time employee, Participant A would not have performed 1,000 hours of servicebetween January 1, 2014 and March 14, 2014. It typically takes a full-time employee approximately six months to perform 1,000 hoursof service. Participant A worked from May 1, 2015 through December 31, 2015. An eight month period is enough time for a full-time employee towork 1,000 hours. Thus, Participant A earned a year of vesting credit during 2015. The additional year raises Participant A’s vestedpercentage from 60% to 80%. |
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All of the following years of service may be disregarded for vesting purposes, EXCEPT: A. Years of service before the participant reached age 18 B. Years of service during which the participant declined to make mandatory contributions C. Years of service before the effective date of the plan D. Years of service during which the participant declined to make elective contributions in a 401(k) plan E. Years of service before a one-year break in service, if the participant was vested prior to the break |
D Years of service cannot be disregarded simply because a participant declines to make elective contributions to a 401(k) plan. Yearsof service before a one-year break in service may temporarily disregarded until after the participant completes another year ofservice, however, the one-year break-in-service rule does not affect an employee’s vesting percentage in the benefits alreadyaccrued (i.e., benefits accrued before the break in service). An employee does not forfeit his or her vested rights simply because heor she has a break in service. |
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Which of the following statements regarding break-in-service rules for vesting purposes is/are TRUE? I. Service to avoid a break in service must be credited for employees on unpaid maternity or paternity leave. II. Service to avoid a break in service must be credited for employees suspended due to misconduct. III. Service to avoid a break in service must be credited for employees on Family and Medical leave. A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
C Service to avoid a break in service need not be credited for employees suspended due to misconduct |
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All of the following statements regarding the cash-out distribution method are TRUE, EXCEPT A. The entire vested balance must be distributed. B. The participant must consent to distributions of more than $5,000. C. A cash-out distribution may trigger an immediate forfeiture. D. The cash-out rules apply to in-service withdrawals. E. The plan must comply with repayment rules for participants who are rehired. |
D The cash-out rules do not apply to in-service withdrawals |
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Which of the following is/are events that require full vesting of a participant’s benefit? I. Plan entry after satisfying a 15-month eligibility requirement II. Attaining the plan’s NRA III. Merging of the plan with another plan of the employer A. I only B. III only C. I and II only D. II and III only E. I, II and III |
C Eligibility requirements that exceed one year and attainment of Normal Retirement Age (NRA) are both events that require immediate100 percent vesting of account balances; however, plan mergers do not usually require full vesting of account balances |
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Based on the following information, determine the forfeiture allocation for Participant D for the 2015 plan year: --The plan is a calendar year profit sharing plan and is the only plan of the employer. --Forfeitures are allocated in proportion to compensation to participants who worked at least 1,000 hours in the plan year. --Participant B terminated on February 15, 2015. --Participant B was 40% vested with a total account balance of $6,250. --Participant B received a lump sum distribution of $2,500 in October, 2015. --The plan is not top-heavy and satisfies coverage requirements. EE hours worked compensation A 2,040 $200,000 A. $352 B. $482 C. $527 D. $804 E. $878 |
C Participant B’s total account balance was $6,250. Participant B’s distribution of $2,500 represents 40% of Participant B’s totalaccount balance. The remaining 60% of Participant B’s account balance is $3,750 ($6,250 - $2,500). Participant B is not eligible for an allocation. The remaining compensation totals $320,000 ($200,000 + $40,000 + $45,000 +$35,000). The allocation to Participant D is ($45,000 / $320,000) x $3,750 = $527. |
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Based on the following information, determine the forfeiture allocation for Participant D for the 2015 plan year: --The plan is a calendar year profit plan and is the only plan of the employer. --Forfeitures are allocated in proportion to compensation to participants who worked at least 1,000 hours in the plan year. --Participant B terminated on August 15, 2015 and was 20% vested. --Participant B received a lump sum distribution of $1,000 in November, 2015. --The forfeiture reallocation totals $4,000. --The plan is not top-heavy and satisfies coverage requirements. EE hours worked compensation A 1,500 $180,000 A. $83 B. $97 C. $334 D. $386 E. $418 |
D Participant B is not eligible for an allocation. The remaining compensation totals $259,000 ($180,000 + $30,000 + $25,000 +$24,000). The allocation to Participant D is $4,000 / $259,000 * $25,000 = $386. |
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Which of the following statements regarding vesting schedules is/are TRUE? I. Three-year graded (33.3% each year) satisfies statutory minimum vesting standards for a defined contribution plan. II. Six-year graded satisfies statutory minimum vesting standards for a defined contribution plan. III. Three-year cliff vesting satisfies statutory minimum vesting standards for a defined contribution plan. A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
E All of the statements regarding vesting schedules are true. A defined contribution plan may satisfy the legal vesting requirements for employer contributions under one of two statutory minimumschedules: three-year cliff vesting or six-year graded vesting. A plan may also design a customized cliff or graded vesting schedule,provided that participants are no less vested at any point in time than they would be under the statutory cliff or graded vestingschedules. A plan may also design a customized cliff or graded vesting schedule, provided that participants are no less vested at anypoint in time than they would be under the statutory cliff or graded vesting schedules. |
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All of the following statements regarding plan amendments are TRUE, EXCEPT: A. A plan amendment may increase contributions so that a plan meets nondiscrimination requirements. B. An employer may amend a plan’s allocation formula up to the last day of the plan year regardless ofwhether the plan has a last day employment requirement. C. The timing of a plan amendment must not result in discrimination in favor of HCEs. D. The termination of a plan is considered a plan amendment. E. An SMM must be distributed no later than 210 days after the close of the plan year in which an amendmentis adopted. |
B A plan amendment may not reduce an accrued benefit. As a general rule, a participant has accrued a benefit for a plan year under adefined contribution plan after he or she satisfies the plan’s allocation conditions in effect for that plan year. If a plan has a last day of employment rule, no benefit accrues until the last day of the plan year. In this instance, an employer mayamend the plan allocation formula any time prior to the last day of the plan year without reducing accrued benefits. In contrast, if theplan has no last day of employment rule, participants will accrue benefits earlier in the plan year and the employer may not amendthe plan allocation formula at any time prior to the last day of the plan year |
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All of the following statements regarding protected benefits under IRC §411(d)(6) are TRUE, EXCEPT: A. An optional form of benefit is any option that relates to the form or timing of a plan distribution. B. A plan is not required to protect the optional forms of benefit with respect to a rollover contribution. C. Rights and features that are not optional forms of benefit are not protected benefits. D. All optional forms of benefit are protected benefits. E. Ancillary benefits that are not optional forms of benefit are not protected benefits |
D Not all optional forms of benefit are protected benefits. For example, annuity options may be eliminated anytime from a profit sharingplan or stock bonus plan without violating the anti-cutback rules. |
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All of the following statements regarding defined contribution plan terminations are TRUE, EXCEPT A. Top-heavy minimum allocations will continue to accrue after the plan termination date until the finaldistribution of plan assets. B. The employer must establish a date of plan termination. C. A pension plan is required to provide affected participants an ERISA §204(h) notice regarding a plantermination. D. A pension plan should have a legitimate business reason for terminating within ten years of implementation. E. Form 5310 is used to request a determination letter upon plan termination. |
A Top-heavy minimums are not required after the plan termination date, but any minimum contribution liabilities that accrued as of thetermination date, but have not been funded must be satisfied. |
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Which of the following is/are types of plans that may be subject to the ERISA §204(h) notice requirements? I. Target benefit plan II. Cash balance plan III. Money purchase pension plan A. I only B. II only C. I and III only D. II and III only E. I, II and III |
E All of the listed plans may be subject to the ERISA §204(h) notice requirements. An ERISA §204(h) notice is required when an ERISA §204(h) amendment is adopted under a pension plan. An ERISA §204(h)amendment is one that significantly reduces or ceases the rate of future benefit accrual under the pension plan or one thateliminates, ceases or significantly reduces an early retirement benefit or retirement-type subsidy. A pension plan for this purposemeans a defined benefit plan, a money purchase plan, or any other defined contribution plan that is subject to the minimum fundingrequirements under IRC §412. A cash balance plan is a type of defined benefit plan. A target benefit plan is a type of moneypurchase pension plan. |
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All of the following statements regarding Form 5500 audit requirements are TRUE, EXCEPT: A. An accountant would be considered independent of the plan if the accountant is a fiduciary of the plan. B. An accountant would not be considered independent of the plan if the accountant is a service provider forthe plan. C. The accountant should consider whether benefit payments were made in accordance with plan terms. D. For any year in which the plan has large plan filing status, a written opinion of an independent qualifiedpublic accountant must accompany the 5500 filing. E. The audit requirement also applies to a small plan filer, unless certain conditions are satisfied. |
A Plan audits must be performed by a qualified public accountant who is independent of the plan. As a general rule, an accountantwould not be independent of the plan if the accountant is a service provider, fiduciary or participant in the plan. The accountant alsomust be independent of the plan sponsor. This means the accountant does not have a financial interest in the plan sponsor nor is anemployee of the plan sponsor. ( |
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Which of the following statements regarding Form 5500 schedules is/are TRUE? I. Schedule D reports actuarial information. II. Schedule G reports financial transaction information. III. Schedule R reports minimum funding requirements. A. I only B. II only C. I and III only D. II and III only E. I, II and III |
D Schedule D does not report actuarial information. Schedule D is used by a Direct Filing Entity (DFE) when filing Form 5500. It is alsoused to report plan participation in a DFE (an investment offered by a financial institution that is required to, or may, file as a DFE).Master trust investment accounts (MTIAs) are required to file as a DFE. Common/collective investment trusts (CCTs), insurancecompany pooled separate accounts (PSAs), investment entities covered under DOL Reg. §2520.103-12 (103-12IEs) and groupinsurance arrangements (GIAs) may choose to file as a DFE. |
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All of the following are requirements a plan must meet in order to qualify for filing Form 5500-SF, EXCEPT: A. The plan must cover fewer than 100 participants as of the first day of the plan year. B. The plan must meet eligibility requirements for the small plan audit waiver on the basis of qualifying assets. C. The plan must invest at least 95 percent of plan assets in investments that have a readily ascertainable fairmarket value. D. The plan may hold no employer securities at any time during the plan year. E. The plan may not be a multiemployer plan. |
C In order to qualify for filing Form 5500-SF, the plan must invest 100 percent of its assets in investments that have a readilyascertainable fair market value. The other statements regarding requirements a plan must meet in order to qualify for filing Form 5500-SF are true. The plan mustcover fewer than 100 participants as of the first day of the plan year, it must meet eligibility requirements for the small plan auditwaiver on the basis of qualifying assets, it may hold no employer securities at any time during the plan year and it may not be amultiemployer plan |
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Which of the following statements regarding Form 5500 filing requirements is/are TRUE? I. Form 5500 Schedule C is required for any large plan filer that changes the actuarial firm during the year. II. A one-participant owner plan with $500,000 of plan assets is not required to file Form 5500. III. SEP plans are generally exempt from Title I Form 5500 reporting requirements. A. I only B. II only C. I and III only D. II and III only E. I, II and III |
C No 5500 filing is required for a one-participant owner plan with assets of $250,000 or less as of the end of the plan year. A oneparticipantowner plan with $500,000 of plan assets will likely qualify for the simplified reporting requirements of Form 5500-EZ, but isnot exempt from 5500 filing requirements altogether. |
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All of the following statements regarding Form 5500 penalties are TRUE, EXCEPT: A. The IRS has the authority to impose penalties for late or deficient Form 5500 filings. B. The DOL has the authority to impose penalties for late or deficient Form 5500 filings. C. The DOL may impose a civil penalty of up to $2,500 per day with no limit. D. The DOL may impose a penalty on a large plan for a missing auditor's report. E. Under the DFVC Program, plan sponsors may voluntarily file late returns in exchange for a significantlyreduced late filing penalty. |
C Both the IRS and DOL have authority to impose penalties for late or deficient Form 5500 filings. The IRS penalty is $25 per day with amaximum penalty of $15,000 (applicable after 600 days) with respect to the filing required for a plan year. The DOL may impose acivil penalty of up to $1,100 per day with no limit. |
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Based on the following information, determine the latest date for filing the Form 5500: --The plan year begins July 1, 2014 and ends June 30, 2015. --Form 5558 has been filed timely. A. June 20, 2015 B. September 15, 2015 C. January 31, 2016 D. March 15, 2016 E. April 15, 2016 |
E The filing deadline for Form 5500 is 7 months following the end of the plan year (January 31, 2016) plus 2½ months if on extension(April 15, 2016). Note: Effective for tax years beginning after December 31, 2015, the Form 5500 maximum extension deadline has been expandedfrom a 2½ month extension to a 3½ month period. That means for calendar plan years, beginning with the 2016 Form 5500 filing, themaximum filing deadline will move from October 15, 2017 to November 15, 2017 |
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All of the following are qualifying plan assets for purposes of the small plan audit waiver, EXCEPT: A. Qualifying employer securities B. Assets held by a regulated financial institution C. Registered mutual funds D. Coins held in a safe deposit box of a bank E. Annuity contracts |
D Coins held in a safe deposit box are not qualifying plan assets. |
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Which of the following actions is/are violations of the ASPPA Code of Professional Conduct? I. Performing a client's ADP test in a careless manner without gathering sufficient data II. Being convicted of a misdemeanor due to traffic violation III. Providing a plan amendment to a client after December 31, knowing that the client intends to back date the document A. I only B. II only C. I and III only D. II and III only E. I, II and III |
C Performing work for a client in a careless manner without gathering sufficient data is a violation of the professional integrity portion ofASPPA’s Code of Professional Conduct which states that an ASPPA member shall perform professional services with honesty,integrity, skill and care. Although not advised, being found guilty of a misdemeanor that is not financially-related does not violate ASPPA’s Code ofProfessional Conduct. Pleading guilty or being found guilty of any financially-related misdemeanor or any felony (regardless of thenature of the crime) is a violation of the professional integrity portion of ASPPA’s Code of Professional Conduct. Providing a documentation to a client with knowledge that the client intends to back date the document is a violation of the “control ofwork product” portion of ASPPA’s Code of Professional Conduct which states that an ASPPA member shall not perform professionalservices when the member has reason to believe that they may be used to violate or evade the law. |
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Which of the following actions is/are acceptable in accordance with the ASPPA Code of Professional Conduct? I. Recommending that a client change the profit sharing allocation formula in a plan that is administered by another firm II. Discussing a specific participant's investment elections with an unrelated investment advisor III. Discussing with a client the fees paid by other clients that the ASPPA member services A. I only B. II only C. I and III only D. II and III only E. I, II, and III |
A Discussing a specific participant's investment elections with an unrelated investment advisor is a violation of the participant’sconfidentiality if the participant has not given permission for you to discuss the information with the unrelated investment advisor.Discussing with a client the fees paid by other clients that the ASPPA member services is a violation of one client’s confidentiality ifthat client has not given permission for you to discuss the information with another client |
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All of the following statements regarding ASPPA’s Code of Professional Conduct are TRUE, EXCEPT: A. An ASPPA member may perform professional service involving a potential conflict of interest if certainconditions are satisfied. B. The ASPPA Code of Professional Conduct must be prominently displayed in each ASPPA member’s office. C. An ASPPA member may use membership titles and credentials only in accordance with ASPPA’s Code ofProfessional Conduct. D. An ASPPA member may provide opinions and advice only when qualified based on education, training orexperience. E. An ASPPA member must disclose to a client all sources of direct or indirect compensation received withrespect to services performed for such client. |
B ASPPA members are not required to display the ASPPA Code of Professional Conduct in their offices |
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Which of the following statements regarding ASPPA’s Code of Professional Conduct is/are TRUE? I. Working for clients who have conflicting interests may be acceptable under ASPPA's Code of Professional Conduct if certainconditions are satisfied. II. Precautions should be taken to ensure that professional communications are appropriate to the circumstances and the intendedaudience. III. Refusing to provide conversion data to a client's new service provider violates ASPPA's Code of Professional Conduct A. I only B. III only C. I and II only D. II and III only E. I, II and III |
E Working for clients who have conflicting interests is acceptable if the member’s ability to act fairly is unimpaired, full disclosure ismade and both clients agree to continue the relationship. Refusing to provide conversion data to a client's new service provider is aviolation of the “courtesy and cooperation” portion of ASPPA’s Code of Professional Conduct |
