Regulatory Compliance & Legal Framework Flashcards
7 cards from real RMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance & Legal Framework flashcards as text
A plan document must be restated periodically to incorporate legislative changes. What is this process called?
Answer: Plan restatement
A plan restatement is a complete rewrite of the plan document required periodically by the IRS to incorporate cumulative legal changes.
Under ERISA, which document must be provided to a participant upon request and within 30 days, describing the plan's terms in plain language?
Answer: Summary Plan Description
The Summary Plan Description (SPD) must be written in plain language and furnished to participants upon request within 30 days.
Which COBRA continuation coverage rule requires employers with 20 or more employees to offer continued health coverage after a qualifying event?
Answer: IRC Section 4980B
IRC Section 4980B imposes an excise tax on employers who fail to offer COBRA continuation coverage, effectively enforcing the requirement.
Under SECURE Act 1.0, the required beginning date for RMDs was changed so participants who turn 72 after which year must begin RMDs at age 72?
Answer: 2019
The SECURE Act of 2019 raised the RMD starting age from 70½ to 72 for individuals who had not yet reached 70½ by December 31, 2019.
Which fiduciary exemption allows a plan service provider to receive otherwise prohibited compensation if fees are reasonable and disclosed?
Answer: ERISA Section 408(b)(2)
ERISA Section 408(b)(2) exempts reasonable compensation paid to service providers for services actually rendered to the plan, provided there is adequate disclosure.
ERISA's coverage rules under Section 202 establish minimum standards for which plan feature?
Answer: Employee participation eligibility
ERISA Section 202 sets minimum age (21) and service (1 year) requirements that plans cannot exceed for determining when employees become eligible to participate.
Which IRS correction program allows plan sponsors to fix qualification failures and maintain the plan's tax-favored status?
Answer: Employee Plans Compliance Resolution System (EPCRS)
EPCRS is the comprehensive IRS program encompassing self-correction, VCP, and audit-closing agreement procedures for fixing plan qualification failures.