NIPA APR Practice Questions - NIPA APR Accredited Pension Representative Exam

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A plan sponsor wants to maximize owner contributions in a 401(k) plan with a cross-tested allocation. Which is the BEST starting point for design analysis?

Group the owner in a separate allocation rate group from staff and confirm each rate group passes the §401(a)(4) ratio percentage or average benefits test Allocate all contributions pro rata to compensation, then test under ADP/ACP only Use a flat-dollar allocation so every participant receives the same dollar amount Apply integration with Social Security, which automatically passes general nondiscrimination

Correct Answer:

Group the owner in a separate allocation rate group from staff and confirm each rate group passes the §401(a)(4) ratio percentage or average benefits test

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