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Official Practice ProblemFINRA Series 7 Blueprint: Function 1
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Question #s7-prep2-s7-q-193Function 1Fundamental

Retirement Accounts

Under ERISA, a qualified retirement plan may require employees to meet which maximum eligibility requirements before participating?

Correct Choice: D

ERISA max eligibility: age 21 + 1 year service (1,000 hours). Plans can be more generous.

Complete Analysis & Legal Rationale

ERISA permits plans to require employees to reach age 21 and complete 1 year of service (at least 1,000 hours) before becoming eligible. Plans cannot impose stricter requirements than these maximums.

Distractor Autopsy (Why Other Options Are Traps)

FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:

Choice AIncorrect
Concept Trap

While more permissive, this is not the maximum permitted under ERISA.

Choice BIncorrect
Concept Trap

Age 25 and 2,000 hours exceed the ERISA maximum requirements.

Choice CIncorrect
Concept Trap

The service requirement is typically 1 year (1,000 hours), not 6 months.

Choice DCorrect
None

Matches the verified teaching point in the explanation.

Authorities & References:

Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.

🏛️

Regulatory Authority & Citations: Primary Legal Sources

Verified citations governing Question #s7-prep2-s7-q-193 (FINRA Series 7 Content Outline)

To pass the FINRA Series 7, candidates must understand not just the calculation formulas, but the exact federal securities acts, SRO rulebooks, and statutory frameworks that enforce them. Review the primary authority records below:

FINRAFINRA Series 7 Content Outline— General Securities Representative Examination (Series 7) Content Outline

Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.

Read FINRA Official Rule

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