Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 - Free CRPC Practice Questions and Study Guide

The type of plan that allows employer contributions to vary from year to year while requiring those contributions to be substantial and recurring is the cross-tested plan. This plan provides flexibility in how employer contributions are structured, allowing them to adjust based on the financial situation and strategy of the employer.

Cross-tested plans enable employers to contribute different amounts for different groups of employees while meeting specific nondiscrimination requirements. This can lead to a situation where contributions vary annually but still maintain the necessary substantiality and recurrence that meet regulatory standards. This flexibility can enhance employee benefits and allow for targeted retirement savings plans, particularly for highly compensated employees.

In contrast, the other options represent different types of retirement plans with distinct contribution structures and requirements. For example, defined benefit plans typically require fixed annual contributions calculated based on actuarial assumptions about future payouts. Stock bonus plans often involve contributions in the form of company stock rather than cash and do not provide the same level of variability. Money purchase plans typically involve fixed, pre-determined contributions from employers each year without the flexibility that cross-tested plans offer.