NAPA members, NAPA Firm Partners, and advisors with an NQPA™ Education Sponsor Enrollment Code can access the program at no cost.
Don’t have an enrollment code?
Purchase the course from the ARA Marketplace.
Curriculum
NAPA provides study materials to help individuals prepare for the NQPA™ certification exam. The NQPA-1: Plan Fundamentals online course, NQPA-2: Advanced Plan Design online course, and the resource guides in each course are the preferred study materials for the examination.
Both online courses are divided into five modules, and each contains a resource guide focused on examination content. Here is the breakdown of the NQPA™ study materials:
NQPA-1: Plan Fundamentals Online Course
Module 1: An Introduction to Nonqualified Plans
In this module, you will learn the basics qualified plan advisors need to employ nonqualified plans as an effective business building opportunity.
At the end of this module, you will be able to:
- Understand the fundamentals of recognizing and successfully marketing nonqualified plans
Module 2: Nonqualified Plan Fundamentals
In this module, you will learn about the factors that influence the design of nonqualified (NQ) plans.
At the end of this module, you will be able to:
- Understand the regulatory, operational, and plan design concepts essential for nonqualified plan advisors to know.
Module 3: Plan Design Provisions
In this module, you will learn about the unique provisions of nonqualified plan design.
At the end of this module, you will be able to:
- Highlight the unique provisions of nonqualified plan design such as: types of compensation, deferral election timing, permitted distribution triggers, rules against changing elected deferrals, prohibitions against accelerating benefits, earning crediting methodologies, and vesting.
Module 4: Nonqualified Plan Tax Considerations and Plan Financing
In this module, you will learn about nonqualified plan tax considerations and plan financing for both plan participants and plan sponsors.
At the end of this module, you will be able to:
- Examine plan tax considerations, approaches to plan financing, nonqualified trusts and guarantees, and nonqualified plan errors, corrections and audits.
Module 5: Plan Marketing and Implementation
In this module, you will learn about plan marketing and implementation through the eyes of five (5) advisors as they introduce nonqualified plans to prospective sponsors.
At the end of this module, you will be able to:
- Recognize the stages of marketing a nonqualified plan to a prospective plan sponsor: prospect, approach, discover, model, and create
- Identify the plan implementation process, components, and typical timeline
- Appraise several key types of nonqualified plans
NQPA-2: Advanced Plan Designs
Module 1: Employer Incentive & Equity Plans
In this module, you will explore nonqualified incentive and equity plans. Incentive and equity plans can be used to build company benefits that incentivize key aspects of performance, thus boosting business goals and rewarding employees for their role in the success of the business.
At the end of this module, you will be able to:
- Compare and contrast different types of plans including: long-term incentive plans (LTIPs), stock appreciation rights (SARs), phantom stock, restricted stock awards (RSAs), restricted stock units (RSUs), incentive stock options (ISOs), nonstatutory options (NSOs)
- Identify the incentive or equity plan that would best achieve a client’s primary goals and objectives
Module 2: Life Insurance and Informal Funding of Nonqualified Plans
In this module, you will learn about Corporate Owned Life Insurance (COLI) can informally fund a nonqualified deferred compensation plan.
At the end of this module, you will be able to:
- Identify key attributes of life insurance
- Describe the use of life insurance as a method of funding a nonqualified plan
- Explore alternative plan design options that might use corporate owned life insurance (COLI) such as: restrictive endorsement bonus arrangements (REBA) and split dollar arrangements
Module 3: Nonprofits and Rabbi Trusts
In this module, you will learn about nonqualified deferred compensation plans within nonprofit organizations.
At the end of this module, you will be able to:
- Describe how IRC 457 governs nonprofit organization nonqualified plans including deferral limits, vesting, taxation, catch-up contributions, and required minimum distributions (RMDs)
- Understand that nonprofit organizations compensation reporting on IRS Form 990 can influence nonqualified plan development
- Describe key considerations for establishing a Rabbi Trust
Module 4: Income Tax & Accounting
In this module, you will learn about tax implication and accounting considerations for nonqualified deferred compensation plans.
At the end of this module, you will be able to:
- Describe the application and calculation of FICA taxation using the special timing rule and the impact of present value versus whole dollar, the non-duplication rule, and potential reporting benefits when income has created Top Hat Status for a plan participant
- Explain the two different methodologies of FICA tax reporting available when deferred compensation balances ultimately vest; the lag method and the estimated method.
- Describe how nondeferred compensation plans are accounted for on the plan sponsor’s balance sheet and income statement
Module 5: Case Studies
In this module, you will review what you have learned by taking a closer look at case studies focusing on 457(f) plans, endorsement split dollar arrangements, collateral assignment split dollar arrangements, options, and COLI versus traditional investments.
At the end of this module, you will be able to:
- Apply the consultative workflow process to case studies
- Identify the nonqualified deferred compensation plan that most closely aligns with a client’s goals and objectives
Next Steps
So, you finished the NQPA™ Prep Course, great job!
Here is what comes next…
- Take the practice exam multiple times, located on your Learning Activities dashboard
- Review the Candidate Handbook
- Purchase and take the proctored designation exam
Check out the FAQ section below if you still have questions and are looking for answers.
NAPA members, NAPA Firm Partners, and advisors with an NQPA™ Education Sponsor Enrollment Code can access the program at no cost.
Don’t have an enrollment code?
Purchase the course from the ARA Marketplace.
About The Authors
Jeff Acheson CPW®, CFP®, CPFA™, AIF®, CEPA®, NQPA™ , CAPP™
Certified Private Wealth Advisor®
Advanced Strategies Group
Barry K. Downey
Smith and Downey, P.A.
Jeff’s 40-year career path in the financial services industry has created a value proposition that is an exceptional and diversified integration of credentialed education, experience-based knowledge, and industry leadership. His fiduciary-based business model focuses on enhancing his ability to be a trusted advisor to high-net-worth individuals, families, businesses and their mission critical employees, retirement plan sponsors and charitable organizations.
Jeff champions a message of the upside opportunities possible for financial professionals who adopt multidisciplinary business models focused on the efficient execution of multifaceted business development strategies. These strategies are aimed at helping financial professionals exponentially grow and diversify their practice capabilities leading to expanded and increased revenue streams which ultimately drive enhanced practice valuations.
- American Retirement Association
- Board of Directors
- Government Affairs Committee
- National Association of Plan Advisors (NAPA)
- Past President
- Past Chairman – Government Affairs Committee
- American Society of Pension Professionals and Actuaries (ASPPA) Member
- Financial Planning Association (FPA) Member
- Investments & Wealth Institute® Member
- Franklin Templeton Retirement Innovation Advisory Council
- Journal of Pension Benefits – Columnist
Barry is a co-founder of Smith & Downey, a U.S. law firm with a national practice concentrating in employee benefits, executive compensation, and labor and employment law.
Barry’s practice deals with all aspects of employee benefits and executive compensation law. He has extensive experience in designing, drafting, and providing advice concerning all types of employee benefit and executive compensation programs. Barry’s clients range from professional and entrepreneurial firms with just a few employees to international conglomerates with hundreds of thousands of employees. He represents publicly traded, privately held, tax-exempt, church related and governmental employers, as well as service firms — such as financial institutions, third-party administrators, benefits consultants, insurance professionals and accounting firms — that provide employers with employee benefits and executive compensation services.
Barry is a co-author of the Nonqualified Deferred Compensation Answer Book, now in its Tenth Edition, published by Wolters Kluwer Legal & Regulatory U.S. (Copyright © 2020 CCH Incorporated).
Since 1995, Barry has received the highest possible peer review ratings from Martindale Hubbell (AV® PreeminentTM) for ethical standards and professional ability. Since 2010, Barry has been peer selected for inclusion in The Best Lawyers in America, Employee Benefits (ERISA) Law, the oldest and most respected peer-review publication in the legal profession.
Frequently Asked Questions
Who can take the NAPA Nonqualified Plan Advisor (NQPA™) Education Program?
- All NAPA Members are eligible to receive a free enrollment code for the NQPA course.
- Non-NAPA Members can receive an enrollment code from an education partner or purchase a NAPA membership to receive their access.
How do I receive an enrollment code?
- NAPA and our education partners have distributed enrollment codes to our members and affiliates to provide access to the NQPA online certificate program. Check your email and spam folders if you have not received your code.
- NAPA members that have not received an enrollment code can request one by emailing Customer Care. Non-members can purchase a NAPA Membership to receive their code.
Is there a cost for the NQPA Education Program?
There is no cost affiliated with the education for NAPA Members or those using an enrollment code, thanks to our Education Sponsors.
Don’t have an enrollment code? No worries, the course materials are available for purchase from the ARA Marketplace
NAPA NQPA™ Modules
$500
NAPA’s Broker-Dealer and RIA Firm Partners are eligible for volume discounts on the education materials and virtual bootcamps. For more information please contact Matthew Grandonico at 703 516 9300 x 133.
How long does it take to complete the NQPA Education Program?
- The NQPA™ education program is split into two parts:
- NQPA-1: Plan Fundamentals
- NQPA-2: Advanced Plan Designs
- Learners should expect to spend at least 10 hours of study in each part.
- Each part is comprised of 5 (five) interactive modules, followed by a 50- question assessment.
What content is covered on the NQPA Education Program?
- NQPA-1: Plan Fundamentals
- Introducing Nonqualified Plans
- Nonqualified Plan Fundamentals
- Plan Design Provisions
- Nonqualified Plan Tax Considerations and Plan Financing
- Plan Marketing and Implementation
- NQPA-2: Advanced Plan Designs
- Employer Incentive and Equity Plans
- Life Insurance and Informal Funding of Nonqualified Plans
- Nonprofits and Rabbi Trusts
- Income and Accounting
- Practical Case Studies
How many CE is provided by completing the NQPA™ Education Program?
NQPA-1: PLAN FUNDAMENTALS
ASPPA CE — 7.5
NAPA Relevant — 7.5
NTSA — 7.5
CFP® — 4.0
AIF® – 7.5
ASPPA CE — 7.5
NAPA Relevant — 7.5
NTSA — 7.5
CFP® — 4.0
AIF® – 7.5
NQPA-2: ADVANCED PLAN DESIGNS
ASPPA CE — 8.5
NAPA Relevant — 8.5
NTSA — 8.5
CFP® — 5.0
AIF® – 8.5
Do I have to take both NQPA-1 and NQPA-2 to take the exam?
No, learners are not required to take the education materials to sign up and take the exam. It is strongly recommended that learners take the education because the exam covers materials covered throughout the education.
Is the exam on NQPA-1 or NQPA-2 materials?
The exam covers content found in both NQPA-1 and NQPA-2.
How should I best go about studying?
The best way to study for this exam is to pass both the NQPA-1 and NQPA-2 course assessments, review the Resource Guides, and take the practice exam.
What is the cost of the NQPA credential exam?
NAPA NQPA™ Exam
$405
$405
NAPA’s Broker-Dealer and RIA Firm Partners are eligible for volume discounts on the designation exam. For more information, please contact Matthew Grandonico at 703 516 9300 x 133.
Are there any on-going fees?
NAPA Credentialed Maintenance Fees/NAPA Membership Dues
$75 with NAPA Firm Partner *
$665 with no NAPA Firm Partner affiliation **
$75 with NAPA Firm Partner *
$665 with no NAPA Firm Partner affiliation **
* Please Note: If you currently hold other designations in other American Retirement
Association organizations and add a CPFATM to your current designations, your dues will be different than above. Contact Customer Care with questions.
** Membership dues include your credential maintenance fee.
How do I apply for my credential?
- Once you have been notified of a passing score on your exam, you will submit your credential application at https://napamember.org/membership
How can I confirm my NQPA™ credential status?
Names appear on the NAPA Credential Check website in the beginning of the month following when your designation was approved. Example: Your application to earn the NQPA™ is approved on June 10, 2023. Your name will appear on the NAPA Credential Check website sometime in the first two weeks of July 2023.
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