Cebs - Rpa 2 Exam Questions & Answers 2024

Investment policy statement for qualified retirement plans for participant directed includes: {Ans: Number of options permitted, the range of investment options allowed and default investment options.}Factors included in determining EE's cost basis for tax purposes {Ans: Aggregate of any amount EE contributed on after-tax basis; aggregate of prior insurance costs EE reported as taxable income; loans from plan to participant that were treated as taxable; certain items such as contributions made by ER after 1950 but before 1963}Solo 401(k) plan {Ans: 401(k) offered to a one-person firm or a two-person firm, usually composed of owner and spouse, that must comply w/ 401(k) admin requirements except for 5500 filing--provided that assets are $250,000 or less.}Info that must be provided to plan participants who direct investments {Ans: Explanation of importance of diversifying investments.}Traditional DB plan (often final avg pay) or cash balance plan combined, offering participants both options: {Ans: Minimum balance pension plan}IRA distributions {Ans: Excess accumulation subject to 50% excise tax; lump-sum distributions not qualify for long-term capital gains treatment; distributions to pay medical expenses exceeding 7.5% of AGI are free from 10% tax penalty; if owner died before entire interest is distributed, required distribution