Question 1

280G

Accepted Answer

Code section which governs certain payments to executives because of a change in control of the company.

Question 2

3(21) Fiduciary

Accepted Answer

An individual who provides investment advice for a fee. Under this type of arrangement, the plan sponsor retains the ultimate decision-making authority for the plan’s investments and may accept or reject any recommendations. Both the plan sponsor and the 3(21) fiduciary share the fiduciary responsibility.

Question 3

3(38) Fiduciary

Accepted Answer

Any fiduciary (other than a trustee or named fiduciary), who has the power to manage, acquire, or dispose of any asset of a plan; who (1) is registered as an investment adviser under the Investment Advisers Act of 1940  with the SEC, or with a State, (2) is a bank; or (3) is an insurance company qualified to perform services and (4) has acknowledged in writing that he is a fiduciary with respect to the plan. Under such an arrangement, the plan sponsor is relieved of all fiduciary responsibility for the investment decisions made by the investment professional.

Question 4

402(g) Deferral Limit

Accepted Answer

Code Section that limits the amount of elective deferrals which can be made by an individual in a calendar year.

Question 5

401(k) Plan

Accepted Answer

A retirement plan which permits employees to make pre-tax salary deferrals and to which employers may make matching and/or non-elective contributions. Sometimes called a “cash or deferred arrangement”" or “CODA.”

Question 6

403(b) Plan

Accepted Answer

A retirement plan (like a 401(k) plan) for certain employees of public schools, employees of certain Code Section 501(c)(3) tax-exempt organizations and certain ministers.

Question 7

404(c) Plan

Accepted Answer

A plan which permits participants to direct the investment of the assets in their plan accounts, and which meets certain requirements under Code §404(c) that relieve plan fiduciaries of some liability for investment decisions.

Question 8

409A

Accepted Answer

Code section which regulates nonqualified deferred compensation.

Question 9

415 Limit

Accepted Answer

Code Section that limits the amount of Annual Additions which can be made for individual participants in a plan year.

Question 10

457(b) Plan

Accepted Answer

Non-qualified, unfunded deferred compensation plan available for certain state and local governments and tax exempt entities.

Question 11

457(f) Plan

Accepted Answer

Non-qualified, unfunded deferred compensation plans available for certain state and local governments and tax exempt entities.

Question 12

ACA

Accepted Answer

The Affordable Care Act, officially known as the Patient Protection and Affordable Care Act, and commonly known as Obamacare, a comprehensive health care reform law effective in 2010.

Question 13

ACP Test

Accepted Answer

Actual Contribution Percentage Test, which is a nondiscrimination test which compares the amount of Annual Additions received by HCEs and non-HCEs under a 401(k) or 403(b) plan.

Question 14

AD&D

Accepted Answer

Accidental death & dismemberment insurance.

Question 15

Adoption Agreement

Accepted Answer

The part of a pre-approved retirement plan document which provides for the optional provisions available under the document, and which is executed by the plan sponsor and participating employers when adopting the document.

Question 16

ADP

Accepted Answer

Actual Deferral Percentage Test, which is a nondiscrimination test which compares the amount of deferrals made by HCEs and non-HCEs under a 401(k) plan.

Question 17

Advisor

Accepted Answer

An outside person or entity who provides guidance and advice on managing the plan.

Question 18

Alternate Payee

Accepted Answer

An individual who is entitled by a court order (a QDRO) to an interest in the account of a plan participant, generally a former spouse.

Question 19

Amendment

Accepted Answer

A written change to plan terms which has been adopted by the plan sponsor. May be discretionary or required by law.

Question 20

Annual Additions

Accepted Answer

Annual contributions to all of a participant’s accounts in plans maintained by one employer (and any related employer). These include:
Elective Deferrals (but not catch-up contributions)
Matching Contributions
Non-Elective Contributions
Allocations of Forfeitures

Question 21

Audit CAP

Accepted Answer

The Audit Closing Agreement Program, under EPCRS, which is the program under which plan failures discovered during an IRS audit are corrected and sanctions are assessed.

Question 22

Automatic Enrollment, Automatic Deferral

Accepted Answer

A plan feature that allows an employer to automatically deduct elective deferrals from an employee’s wages unless the employee makes an election not to contribute or to contribute a different amount.

Question 23

Automatic Escalation

Accepted Answer

A plan feature that allows an employer to automatically increase in an annual basis, the amount of elective deferrals from an employee’s wages unless the employee makes an election not to contribute or to contribute a different amount.

Question 24

Base Plan Document, BPD

Accepted Answer

The part of a pre-approved retirement plan document which provides for the non-optional, boilerplate provisions under the document.

Question 25

Beneficiary

Accepted Answer

An individual or entity who is entitled, under the terms of the plan, to all or a portion of a participant’s account if the participant dies.

Question 26

Cafeteria Plan, Flex Plan, 125 Plan

Accepted Answer

A plan which is tax-qualified under Code §125, providing a choice between cash or one or more permitted benefits, such as health insurance, flexible spending accounts, disability insurance, life insurance, etc.

Question 27

COBRA

Accepted Answer

The Consolidated Omnibus Budget Reconciliation Act of 1986, which provides for the continuation of group health plan coverage upon the occurrence of certain events which would otherwise result in a loss of coverage.

Question 28

Code

Accepted Answer

The Internal Revenue Code.

Question 29

Committee

Accepted Answer

A plan’s administrative committee, which may be established by a plan sponsor and delegated some or all duties and powers of the plan administrator.

Question 30

Compensation

Accepted Answer

A participant’s pay that is considered under the plan, as defined under the terms of the plan document.

Question 31

Custodian

Accepted Answer

A plan service provider, typically a bank or other financial institution that holds plan assets.

Question 32

Default Beneficiary

Accepted Answer

A Beneficiary determined under the terms of the plan where there is no Designated Beneficiary.

Question 33

Defined Benefit Plan

Accepted Answer

A retirement plan which provides for a specified benefit be paid from the plan on retirement, such as a pension plan.

Question 34

Defined Contribution Plan

Accepted Answer

A retirement plan which provides for a specified contribution or contributions to the plan, such as a profit-sharing plan, 401(k) plan, or money purchase pension plan.

Question 35

Dependent Care FSA, DCAP

Accepted Answer

A dependent care flexible spending account, which is an arrangement under a Cafeteria Plan, through which an employee may reduce their taxable compensation and be reimbursed for qualifying dependent care expenses.

Question 36

Designated Beneficiary

Accepted Answer

A Beneficiary determined under a properly filed form with the Plan Administrator, including, if applicable, spousal consent.

Question 37

DFVCP

Accepted Answer

Delinquent Filer Voluntary Compliance Program, under which late Form 5500s may be voluntarily filed with reduced penalties if certain criteria are met.

Question 38

Directed Trustee

Accepted Answer

A Trustee who does not exercise discretion regarding the assets of the plan, but who receives direction from the plan administrator or its delegee.

Question 39

Discretionary Trustee

Accepted Answer

A Trustee who exercises discretion regarding the assets of the plan

Question 40

DOL

Accepted Answer

The Department of Labor, which, among other things, regulates and enforces ERISA requirements.

Question 41

Domestic Partner

Accepted Answer

A participant’s partner of the same or opposite sex who lives with the participant and they are involved in an interpersonal relationship sharing their domestic life as if married, however they are not legally married. May be registered or unregistered.

Question 42

EAP

Accepted Answer

Employee Assistance Program, which offers one or more services intended to help employees in crisis such as counseling, legal services, or referrals.

Question 43

EBSA

Accepted Answer

The Employee Benefits Security Administration, a department within the DOL, which is responsible for administering and enforcing the fiduciary, reporting and disclosure provisions of Title I of ERISA.

Question 44

EGTRRA

Accepted Answer

The Economic Growth and Tax Reconciliation Relief Act of 2001, a comprehensive retirement plan law which required both interim amendments and restatements.

Question 45

Elective Deferrals

Accepted Answer

Employee contributions of a portion of compensation to a 401(k), 403(b) or 457 plans. Either pre-tax or Roth.

Question 46

Employee Benefit Plan

Accepted Answer

An Employee Pension Plan or an Employee Welfare Plan, or a plan which is both.

Question 47

Employee Pension Plan (governed by ERISA)

Accepted Answer

Any plan, fund, or program established or maintained by an employer or by an employee organization, or by both, to the extent that by its express terms or as a result of surrounding circumstances such plan, fund, or program (i) provides retirement income to employees, or
(ii) results in a deferral of income by employees for periods extending to the termination of covered employment or beyond

Question 48

Employee Welfare Plan (governed by ERISA)

Accepted Answer

Any plan, fund, or program established or maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise, (A) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services, or (B) any benefit described in ERISA §186(c) (other than pensions on retirement or death, and insurance to provide such pensions).

Question 49

Employer Contributions

Accepted Answer

Contributions to participant accounts such as matching contributions and non-elective/profit sharing contributions as well as contributions made by the employer to fund a defined benefit plan.

Question 50

EOC, COC

Accepted Answer

The evidence of coverage or certificate of coverage, which describes the benefits provided for under an insurance contract such as medical, dental, vision, life, etc.

Question 51

EPCRS

Accepted Answer

The Employee Plans Compliance Resolutions System, under which the IRS correction programs are operated, including SCP, VCP, and Audit CAP.
 
https://www.irs.gov/retirement-plans/epcrs-overview

Question 52

ERISA

Accepted Answer

The Employee Retirement Income Security Act of 1974, which governs employee benefit plans and is enforced and regulated by the DOL.

Question 53

Favorable Determination Letter

Accepted Answer

A letter issued by the IRS on the form of a qualified retirement plan document, issued to the individual plan sponsor.

Question 54

Fiduciary

Accepted Answer

Any person who (1) exercises any discretionary authority or control over the management of a plan or the management of disposition of assets, (2) renders investment advice for a fee, or other compensation with respect to the funds or property of a plan, or has authority to do so, or (3) has discretionary authority or responsibility in the administration of a plan.
 
Meeting your Fiduciary Responsibilities: https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/publications/meetingyourfiduciaryresponsibilities.pdf

Question 55

FMLA

Accepted Answer

The Family Medical Leave Act, which, among other things, provides eligible employees up to 12 workweeks of unpaid leave a year, and requires group health benefits to be maintained during the leave as if employees continued to work instead of taking leave.
 
https://www.dol.gov/agencies/whd/fmla/faq

Question 56

Forfeitures

Accepted Answer

The part of an employee’s account balance, attributable to employer contributions, that is lost because it is not vested when the employee terminates employment.

Question 57

Form 5500

Accepted Answer

The annual report required to be filed with the DOL (or IRS for non-employee retirement plans) each plan year for retirement plans and health and welfare plans.

Question 58

Fringe Benefit Plan

Accepted Answer

A form of pay for the performance of services
 
https://www.irs.gov/publications/p15b

Question 59

FSA

Accepted Answer

A flexible spending account, which is an arrangement under a Cafeteria Plan, through which an employee may reduce their taxable compensation and be reimbursed for qualifying expenses.

Question 60

Group Health Plan

Accepted Answer

An employee welfare benefit plan established or maintained by an employer or by an employee organization (such as a union), or both, that provides medical care for participants or their dependents directly or through insurance, reimbursement, or otherwise.

Question 61

GUST

Accepted Answer

Common reference to a series of laws affecting retirement plans, including the Uruguay Round Agreements Act (GATT); Uniformed Services Employment and Reemployment Rights Act (USERRA); Small Business Job Protection Act (SBJPA); Taxpayer Relief Act of 1997 (TRA’97); IRS Restructuring and Reform Act of 1998 (IRRA); and Community Renewal Tax Relief Act of 2000 (CRA), which required both interim amendments and restatements.

Question 62

Hardship Distribution

Accepted Answer

A distribution from a participant’s account that can only be made if the distribution is both: (1) due to an immediate and heavy financial need, and (2) limited to the amount necessary to satisfy that financial need.

Question 63

HDHP

Accepted Answer

A High Deductible Health Plan, which is a group health plan that has a deductible which is not lower than the annual minimum deductible amount required for HSA eligibility.

Question 64

Health FSA

Accepted Answer

A health flexible spending account, which is an arrangement under a Cafeteria Plan, through which an employee may reduce their taxable compensation and be reimbursed for qualifying health expenses.

Qualified and Non-Qualified Deferred Compensation Plans

Health and Welfare Plans

Plan Correction and Government Audits