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16. A plan sponsor borrows $100,000 from the plan. The loan, plus a reasonable rate of interest, is repaid within 90 days. Consider the following statement: The loan is a prohibited transaction.Is the above statement true or false?
17. A sponsor maintains Plan A and Plan B. Information for the 2012 plan year: FTAP Unfunded vested benefitsPlan A 75% $13,000,000 Plan B 84% $50,000,000 Consider the following statement: Reporting under ERISA section 4010 is required for this sponsor for the 2012 plan year.Is the above statement true or false?
18. Funding balances at 1/1/2012: $0 Normal retirement benefit: $20 per year of service On 2/1/2012, the 2012 AFTAP is certified at 75% On 3/1/2012, the plan’s benefit formula is amended to: $20 per month per year of service accrued through 2/29/2012, plus $25 per month per year of service accrued after 3/1/2012. No contributions are made during 2012. Consider the following statement: The amendment can take effect on 3/1/2012.Is the above statement true or false?
19. Consider the following statement: The only circumstance that would allow for any portion of plan assets to be returned to a plan sponsor is a plan termination.Is the above statement true or false?
20. Plan effective date: 1/1/2001 The plan uses the most restrictive vesting requirements and the 7-year graded vesting schedule. An employee works over 1,000 hours in each year of employment.Employee data:Date of birth 1/1/1985 Date of hire 1/1/2002 Date of termination 12/31/2005 Date of rehire 1/1/2009 Consider the following statement: The employee is 100% vested as of 1/1/2012.Is the above statement true or false?
