Finra Exam Series-6 Topic 3 Question 66 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 66
Topic #: 3

Under the rules of ERISA, all private-employer sponsored retirement plans must:

Aallow any employee to participate in the retirement plan as long as the employee is at least 21 years old.

Bexclude anyone who has not been employed with the firm for at least five years.

Cprovide a specific vesting schedule under which all participants in the plan will become 100% vested after having been in the firm's employ for seven or fewer years.

Dbe defined contribution plans.

Show Suggested Answer

Suggested Answer: D

If Mrs. Newbie-Oldman and her new husband want her name on what was previously his account, she must obtain written authorization from her employer, Savvy Investments, and her new husband must provide his written authorization to Savvy. She is exempted from the proportional investment requirement as Mr. Oldman's spouse, but not from the written authorization requirements under FINRA Rule 2150.

by Jerry at Oct 22, 2023, 06:10 AM

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Raymon

16 days ago

That's a good point, Micaela. Defined contribution plans do align with ERISA regulations. I see your perspective now.

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Peggie

16 days ago

I think option C is the correct answer. ERISA requires a vesting schedule for retirement plans, and 7 years or fewer for full vesting seems reasonable.

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Micaela

20 days ago

I disagree, I believe the answer is D. Defined contribution plans are a requirement under ERISA for private-employer sponsored retirement plans.

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Raymon

22 days ago

I think the answer is C, because it makes sense for employees to become fully vested after a certain number of years.

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