Deadlines
By what date must a new 401(k) plan to make deferrals in the first year be adopted for the current calendar year?
What is Dec 31
True or False: The maximum contribution allowed for a participant to a Cash Balance Plan increases with age
True
What does QACA stand for in 401(k) plan design?
What is Qualified Automatic Contribution Arrangement
SECURE 2.0 allows employers to match this kind of employee contribution even if the employee is not saving to their retirement account.
What are student loan payments?
What is the deadline for taking your first RMD for age 73.
What is April 1st the year following
When must employee deferral contributions be deposited into the plan for small employers (under 100 participants)?
What is no later than 7 business days from pay date
What IRS code section governs the annual benefit limit for Cash Balance Plans?
What is 415
What is the required employer contribution under a QACA safe harbor?
What is either a 3% non-elective or matching contribution of 100% on first 1%, 50% on next 5%.
In 2025, employees born in what year can make the increased catch-up contribution?
What is 1962-1965
This penalty amount applied to missed RMDs changed by SECURE 2.0 to what?
What is 25%, and 10% if corrected timely?
What is the deadline to amend a 401(k) plan for Safe Harbor Match for the next plan year?
What is Nov 30 current year.
What segment rates are used to determine the lump sum calculations for a Defined Benefit Plan?
What is 417e
What is the difference between an EACA and a QACA?
What is EACA allows for withdrawals within 90 days: QACA includes SH
Starting in 2024, which portion of the 401(K) plan is no longer subject to RMDs?
What is Roth account
What is “the rule of 55?
What is terminate employment at age 55, penalty free withdrawal
By when must RMDs (Required Minimum Distributions) begin for participants who turn 73 in the current year (as of 2025)?
What is April 1 2026
What least restrictive vesting schedule must Cash Balance Plans use?
What is 3 year cliff
What is the escalation requirement under Secure 2.0?
What is increase by 1% each year until a max of 10%
What is the startup credit for a new plan in 2025 that has 15 participants and 5 are HCE’s?
What is $3,000 ($500 for autoenrollment)
A deferral refund for failed ADP is a 10% early withdrawal penalty?
False
What is the deadline for providing notice of auto-enrollment to participants under a QACA?
What is 30 days before beginning of Plan year
What interest rate is used to determine that actuarial equivalent benefit when a participant is past NRA?
What is Act Equivalence in the plan document?
What is the correction for missed enrollment with autoenrollment if corrected within 9.5 months end of plan year?
What is No QNEC for missed deferrals only SH if corrected with 9.5 months of end of plan year. Notice required to employee and correct going forward.
In addition to startup costs, SECURE 2.0 introduced a new employer contribution credit of $1,000 per employee that excludes employees that earn over how much annually?
What is $100,000
List the 3 types of termination that employees are automatically 100% immediately?
What is Death, Disability, Termination,