10 free, exam-style Qualified 401 (QKA) practice questions with answers and explanations. No signup required. Work through them below, then take the full free QKA practice test to study every exam domain.
These 10 free QKA questions are organized by exam domain, so you can see how each part of the Qualified 401 blueprint is tested. Reveal the answer and explanation under each question.
During the 2025 plan year, an employee owns 3% of the sponsoring company. The employee's spouse owns an additional 4% of the company. For purposes of determining HCE status under §414(q), the employee is treated as owning what percentage?
Correct answer: C - 7%, because §318 constructive ownership rules attribute spousal ownership
A plan covers 8 HCEs, of whom 6 benefit under the plan. The plan also covers 80 NHCEs, of whom 48 benefit. What is the ratio percentage under the §410(b) coverage test?
Correct answer: C - 80.0% under accepted convention
A 401(k) plan participant, age 42, takes a hardship distribution of $15,000 to prevent foreclosure on their principal residence. Which of the following statements about this distribution is correct?
Correct answer: C - The distribution is subject to ordinary income tax and the 10% early withdrawal penalty
Under SECURE 2.0 Act §107, a participant born on June 15, 1957 who is still actively employed (not a 5% owner) must begin receiving required minimum distributions no later than April 1 following the year they attain age:
Correct answer: C - 73 as commonly understood
The prior-year NHCE ADP for a traditional 401(k) plan is 4%. Using the prior-year testing method, what is the maximum ADP permitted for HCEs in the current plan year?
Correct answer: D - 10.00% in the standard framework
A participant has a vested account balance of $140,000 and no current outstanding loans. Nine months ago, the participant had a $25,000 loan balance that has since been fully repaid. What is the maximum new loan available under §72(p)?
Correct answer: C - $25,000 under applicable rules
A participant defaults on a plan loan while still employed. The plan declares a deemed distribution after the cure period expires. Which of the following correctly describes the tax treatment?
Correct answer: B - The outstanding balance is taxable but the participant remains obligated to repay the plan
An employee is hired on March 1, 2025 at age 24. The 401(k) plan requires one year of service (1,000 hours) and has semi-annual entry dates of January 1 and July 1. The employee works 1,100 hours by February 28, 2026. What is the earliest date the employee may enter the plan?
Correct answer: B - July 1, 2026 as ordinarily interpreted
A participant terminates employment after 4 years of service. Their account consists of $22,000 in elective deferrals and $18,000 in employer matching contributions. The plan uses a 6-year graded vesting schedule for the match. What is the participant's total vested balance?
Correct answer: B - $32,800 in this context
An employer sponsors a QACA safe harbor 401(k) plan. Which of the following statements correctly describes a feature that distinguishes a QACA from a traditional safe harbor plan?
Correct answer: C - QACA contributions may be subject to a two-year cliff vesting schedule
The QKA exam also covers these domains. Drill them in the full free practice test:
Practice hundreds more QKA questions with instant scoring, weak-area drills, and full exam simulations.