Use Review Question 9-7 to review periods of service that can be disregarded for purposes of determining vesting. The top-heavy rules can seem confusing. Remember that the term key employee is not the same as highly compensated employee . You are responsible for this definition on the exam. It is important to understand who is a fiduciary, what his or her affirmative obligations are, and what constitutes a prohibited transaction.
Students are responsible for understanding the various types of insurance investments.
Most important are what are referred to as third-generation products. The table at the back of Chapter 12 is quite helpful in remembering the rules. Looking at actual plan documents can be helpful. If you are a participant in a plan you can request a copy of the plan, or maybe you have access to a company's prototype documents. Look at the plan, the summary plan description, and any benefit statements.