QKA study guide
QKA · Work through your exam, one topic at a time.
The Qualified 401(k) Administrator (QKA) is a professional credential for people who administer defined contribution plans - primarily 401(k) plans - on a day-to-day basis. It is awarded by ASPPA and is most commonly pursued by third-party administrators, recordkeeping and compliance staff, plan consultants, and benefits or HR professionals who want to move from processing transactions to genuinely technical plan knowledge. The QKA study guide has 7 sections and about 2,398 words.
01Retirement Plan Regulatory Framework, ERISA, and the Internal Revenue Code
A qualified plan lives under two overlapping regimes. ERISA (1974) sets conduct standards: Title I (DOL) covers fiduciary duties, reporting and disclosure, and prohibited transactions; Title IV covers PBGC insurance for defined benefit plans.
325 words, about 2 min02Plan Design, Eligibility, and Coverage Requirements
IRC 410(a) caps age and service conditions: age 21 and one year of service (1,000 hours in a 12-month period, or the elapsed-time equivalent). A plan may use two years of service only if it provides 100% immediate vesting thereafter.
349 words, about 2 min03Contributions, Allocations, and Annual Compliance Testing (ADP/ACP, 415, 401(a)(4))
Three separate ceilings apply to defined contribution plans. IRC 402(g) limits elective deferrals ( 23,500 in 2025, plus a 7,500 age-50 catch-up).
350 words, about 2 min04Participant Distributions, Loans, and Related Taxation
Distributions from a qualified plan are governed by IRC 401(a)(9) and 72(t). The required beginning date is April 1 of the year following the later of attainment of the applicable age or retirement, with 5% owners unable to delay regardless of employment status.
338 words, about 2 min05Plan Administration, Government Reporting, and Fiduciary Responsibilities
ERISA 404(a)(1) imposes four duties: act solely in the interest of participants (loyalty), with the care of a prudent person (prudence), diversify investments to minimize the risk of large losses, and follow the plan documents. Breaching fiduciaries may be personally liable for losses and must restore profits; ERISA 405 makes a fiduciary liable for another's breach when it knows of the breach and fails to act.
331 words, about 2 min06Top-Heavy Rules, Vesting, and Nondiscrimination Concepts
A defined contribution plan is top-heavy if key employees' account balances exceed 60% of total balances, measured on the determination date (generally the last day of the preceding plan year). Key employees under IRC 416(i) are officers earning above the indexed threshold ( 230,000 in 2025, limited to the lesser of 50 officers or 10% of employees, minimum three), more than 5% owners, and more than 1% owners earning above 160,000 (2025).
346 words, about 2 min07Operational Compliance Failures and Correction Programs
Qualification is a year-by-year, operation-by-operation standard: a correct written document is necessary but not sufficient. Common operational failures include late deferral deposits, exclusion of eligible employees, incorrect compensation definitions, missed matching contributions, flawed ADP/ACP corrections, improper loans, missed RMDs, and late Form 5500 filings.
359 words, about 2 min