Sample Quiz 2 - This Is A Practice Exam, Worth Zero Cpe Credits
SAMPLE QUIZ 2
Provided as a PRACTICE EXAM
Designed to help familiarize candidates with our Quiz system
Please indicate whether each of the following statements is TRUE or FALSE
Questions and Answers
- 1.
Pension Service Firms have customarily made it part of the plan installation process to apply for Trust ID numbers for Employer Plans by completing a Form SS-4.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Pension Service Firms have traditionally included the application for Trust ID numbers for Employer Plans as part of the plan installation process. This is done by completing a Form SS-4.Rate this question:
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- 2.
PPA restatement documents must be adopted by defined contribution plan sponsors during the 2-year window period that began May 1, 2014 and ends on April 30, 2016.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
During the 2-year window period from May 1, 2014, to April 30, 2016, defined contribution plan sponsors are required to adopt PPA restatement documents. This means that it is necessary for plan sponsors to comply with this requirement within the specified time frame. Therefore, the statement "True" is correct.Rate this question:
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- 3.
The Trust ID number is shown on the annual Form 5500 return.
- A.
True
- B.
False
Correct Answer
B. False -
- 4.
The IRS Form 945 is designed to report federal withholding tax amounts with respect to plan distributions.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The IRS Form 945 is specifically used to report federal withholding tax amounts related to plan distributions. This form is necessary for employers who withhold federal income tax from non-payroll payments or distributions made to plan participants. By completing and submitting this form, employers ensure that the correct amount of federal withholding tax is reported and paid to the IRS. Therefore, the statement is true.Rate this question:
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- 5.
The Trust ID number should be used (instead of the Employer’s Tax ID number) to transmit electronic withholding for plan distributions.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Trust ID number should be used instead of the Employer's Tax ID number to transmit electronic withholding for plan distributions. This is because the Trust ID number is specifically assigned to the trust that holds the plan assets, while the Employer's Tax ID number is used for general tax purposes. Using the Trust ID number ensures that the correct entity is identified and that the withholding is properly applied to the plan distributions.Rate this question:
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- 6.
The Trust ID number should be used (instead of a Sole Proprietor’s Social Security number) on brokerage statements for the Sole Proprietor’s tax-exempt retirement trust account.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Trust ID number should be used on brokerage statements for the Sole Proprietor's tax-exempt retirement trust account because it provides a unique identifier for the trust and helps to differentiate it from the individual's personal Social Security number. This ensures that the correct tax-exempt status is applied to the account and helps to avoid any confusion or errors in reporting.Rate this question:
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- 7.
When an Employer/Plan Sponsor utilizes a daily valuation recordkeeping platform with John Hancock, John Hancock’s master trust ID number is used for electronic withholding transmittals to be done.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
When an Employer/Plan Sponsor uses a daily valuation recordkeeping platform with John Hancock, they utilize John Hancock's master trust ID number for electronic withholding transmittals. This means that the statement "True" is correct.Rate this question:
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- 8.
Trust ID numbers are more essential to Employers/Plan Sponsors with investments that are held in pooled trusts or self-directed brokerage accounts.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Trust ID numbers are more essential to Employers/Plan Sponsors with investments that are held in pooled trusts or self-directed brokerage accounts. This is because these types of investments involve multiple parties and require proper identification and tracking. Trust ID numbers help in accurately identifying and managing the investments within these accounts, ensuring transparency and compliance with legal and regulatory requirements.Rate this question:
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- 9.
The Trust ID number is shown on the Forms 1099-R.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that the Trust ID number is indeed shown on the Forms 1099-R. This means that individuals or entities who receive distributions from a trust will be able to find the Trust ID number on the form.Rate this question:
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- 10.
It is a Best Practice for HR services to provide a package of retirement plan disclosures (such as the SPD) and enrollment paperwork to employees in conjunction with their Plan Entry Date(s).
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Providing a package of retirement plan disclosures and enrollment paperwork to employees in conjunction with their Plan Entry Date(s) is considered a best practice for HR services. This ensures that employees have all the necessary information and paperwork to understand and enroll in the retirement plan effectively. By providing these materials together, HR services can streamline the onboarding process and ensure that employees are well-informed about their retirement benefits from the start.Rate this question:
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Current Version
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Mar 19, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 06, 2015Quiz Created by
Cheryl L.
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