Quiz Which type of fiduciary manages plan administrative tasks/compliance? A. 3(21) fiduciary B. 3(38) fiduciary C. 3(16) fiduciary D. None of the above Sorry, that’s incorrect. Try again! Thats Correct! Learn more about this type of fiduciary and why it is important here.TRUE OR FALSE: Employers can still reduce 2022 taxes in 2023 by establishing a cash balance/defined benefit plan. True False That’s Correct! Learn more about retroactive plan establishment through relaxed deadlines under the SECURE Act here.Sorry, that’s incorrect. Try again! Adding an automatic enrollment feature to a retirement plan can: A. Increase plan participation B. Increase the chance of passed nondiscrimination tests C. Provide a potential tax credit D. All of the above Sorry, that’s incorrect. Try again!That’s Correct! Check out the details on all the benefits of adding automatic enrollment here.What does EPCRS stand for and what does it allow regarding retirement plans? A. Employee Plan Compliance Resolution System – allows for plan self-correction of certain items, including loan failures, document failures, and operational errors B. Employer Participant Code Red System – allows plan participants to submit complaints and suggestions anonymously about their retirement plan C. Economic Participant Crisis Retirement Savings – allows for extra savings for participants who are experiencing a hardship or want to plan ahead for a hardship D. Extra Panicked Cattle Racing Sailors – allows cows to race sailors in order to win their retirement savings Sorry, that’s incorrect. Try again! That’s Correct! Check out our blog for more info on the EPCRS and recent changes here.TRUE OR FALSE: Employers can receive a $5,000 tax credit by establishing a retirement plan the first three years of the plan. True False Sorry, that’s incorrect. Try again!That’s Correct! Learn more about this tax credit and other tax credits available here.Which type of retirement plan allows employers to avoid annual ADP/ACP testing? A. Prevailing wage plans B. Safe harbor plans C. Cash balance plans D. None of the above Sorry, that’s incorrect. Try again!That’s Correct! Learn more about these types of plans here.What type of employer makes an ideal candidate for 3(16) fiduciary services? A. Employers without dedicated retirement plan staff B. Employers without retirement plan expertise C. Employers with larger or more complicated plans D. All of the above Sorry, that’s incorrect. Try again!That’s Correct! Check out our piece on ideal 3(16) candidates for more information here.TRUE OR FALSE: Employers with over 100 employees cannot have a SIMPLE IRA. True False Sorry, that’s incorrect. Try again!That’s Correct! Find more information on the difference between SIMPLE IRAs and 401(k) plans here.TRUE OR FALSE: Prevailing wage includes two parts – the base pay and a separate, per-hour wage, called shag. This shag portion can be used to fund 70’s style décor or outfits for contractors. True False Sorry, that’s incorrect. Try again!That’s Correct! Prevailing wage includes two parts – the base pay and a separate, per-hour wage, called fringe. The fringe can either be given to contractors as part of their wage in cash, OR it can be used to fund bona fide benefits, including a qualified retirement plan. Learn more here.The SECURE Act established a tax credit for employers who add this provision to their plans: A. Eligible Automatic Contribution Arrangements (EACA) – a type of automatic enrollment feature B. Pawticipant amendment – provision that allows for extra savings if participants rescue a dog C. Both a and b D. None of the above Sorry, that’s incorrect. Try again! That’s Correct! Check out a refresher on the biggest changes from the SECURE Act here.
