3862982
Description
Quiz by Justin Guy (just, updated more than 1 year ago
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Created by Justin Guy (just
over 8 years ago
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Question 1
Question
A disqualified person is always a party-in-interest.
Answer
- True
- False
Question 2
Question
A party-in-interest is always a disqualified person.
Answer
- True
- False
Question 3
Question
A PT does not necessarily mean plan disqualification.
Answer
- True
- False
Question 4
Question
The PT rules do not apply to plans whose assets are participant-directed.
Answer
- True
- False
Question 5
Question
A plan may not sell or lease property to a disqualified person.
Answer
- True
- False
Question 6
Question
Loans to plan participants are exempt from the PT rules as long as certain conditions are met.
Answer
- True
- False
Question 7
Question
A class exemption provides relief from the excise tax under the IRC and the fiduciary liability consequences under ERISA.
Answer
- True
- False
Question 8
Question
An excise tax of 100 percent of the amount of the PT may be imposed if the transaction is not timely corrected.
Answer
- True
- False
Question 9
Question
The plan is liable for payment of the PT excise tax.
Answer
- True
- False
Question 10
Question
The DOL may assess civil penalties on a party-in-interest involved in a PT.
Answer
- True
- False
Question 11
Question
All of the following are disqualified persons under IRC §4975, EXCEPT:
Answer
-
A. An accountant who prepares Form 5500 for a plan
-
B. A brother of a 45 percent owner of the plan sponsor
-
C. A plan trustee’s father
-
D. A member of the board of directors of the plan sponsor
-
E. A union whose members are covered by the plan
Question 12
Question
All of the following transactions are exemptions from the PT rules, EXCEPT:
Answer
-
A. The purchase by the plan of the building in which the sponsor conducts his or her business
-
B. Reasonable compensation paid for necessary accounting services for the plan
-
C. The sale of life insurance to a participant from the plan
-
D. The investment of assets of the plan in a bank that is also the plan’s trustee
-
E. A loan to a leveraged ESOP from the plan sponsor to purchase employer stock
Question 13
Question
Which of the following statements regarding consequences of PTs is/are TRUE?
I. Form 5330 is used to transmit the applicable excise tax to the IRS.
II. EPCRS is available to correct PTs.
III. The initial excise tax is 15 percent of the amount involved.
Answer
-
A. I only
-
B. II only
-
C. I and II only
-
D. I and III only
-
E. I, II and III
Question 14
Question
All of the following are covered service providers, EXCEPT:
Answer
-
A. Registered investment advisor compensated by plan assets
-
B. Investment platform provider whose fee is paid by the plan
-
C. Trustee who is paid a percentage of the plan assets from the plan
-
D. Third-party administrator paid partly through 12b-1 fees generated by plan investments
-
E. Plan auditor paid by the plan sponsor
Question 15
Question
Which of the following statements regarding consequences of failing to comply with the required fee disclosures is/are TRUE?
I. The PT exemption will not apply to the covered service provider.
II. The covered service provider will be liable for a 15% excise tax on the amount of fees charged.
III. The IRS may require the service provider to return to the plan any fees that have been paid.
Answer
-
A. I only
-
B. II only
-
C. I and III only
-
D. II and III only
-
E. I, II and III
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