AAPA case studies
AAPA · Put your knowledge to work in context.
The AAPA exam is a professional certification assessment built around four equally weighted domains: client communication and documentation, plan design and benefits and compensation, regulatory and compliance, and administration and operations. That even split is the single most useful fact for planning your study time - each domain carries roughly a quarter of the content, so a candidate who is strong in compliance but weak in operations should not assume strength in one area carries the day. The AAPA case studies are 5 cases and about 2,970 words.
1The Owner Who Wants a Retroactive Fix
A 62-year-old sole proprietor sponsors a one-participant 401(k) plan with a calendar plan year. In March he discovers that for the prior plan year he deferred 18,000 from his S-corp wages and also made a 10,000 employer profit-sharing contribution, but his CPA now says the profit-sharing deposit was actually made from the wrong bank account and was not funded until 14 months after the plan year ended.
479 words, about 2 min2The HCE Who Wants to Defer More Than the Match Allows
A manufacturing company with 140 employees has a traditional 401(k) with a 50% match on the first 6% of pay. The plan is top-heavy and has failed ADP testing two years running.
602 words, about 3 min3The Missing Beneficiary Designation
A participant, age 47, dies unexpectedly. His 401(k) balance is $240,000.
526 words, about 3 min4The Fiduciary Who Chose the Share Class
You serve as a 3(38) investment manager for a 200-participant 401(k). The plan offers 14 funds.
635 words, about 3 min5The Payroll File That Doesn't Match the Census
During annual testing for a 401(k) plan, you reconcile the payroll file to the census and find three problems: (1) two employees who became eligible mid-year were not enrolled and made no deferrals, though they would have deferred had they been given the chance; (2) one participant's compensation in the census omits a $12,000 bonus that was paid and should be included under the plan's compensation definition; and (3) the employer deposited deferrals for the fourth quarter on January 30, though payroll ran biweekly and the amounts were withheld throughout the quarter. The plan has a 6% match and is not a safe harbor plan.
728 words, about 4 min