10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free ACFC questions are organized by exam domain, so you can see how each part of the Advanced Certified in Flexible Compensation blueprint is tested. Reveal the answer and explanation under each question.
Domain 1: ACA Compliant - Advanced Planning Techniques, Part 1
Question 1
An employee elected $2,400 of health FSA coverage effective January 1 and resigned on January 31, when that coverage ended. Only $200 had been withheld from pay. On February 10, within the plan's run-out period, the employee submits a fully substantiated $1,100 dental expense incurred on January 20. There were no earlier reimbursements. How should the administrator handle the claim?
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Correct answer: A - Reimburse $1,100 under the annual coverage elected, without requiring further salary reductions.
Question 2
A participant turns 65 in July 2026 and enrolls in Medicare effective July 1, with no earlier effective date. She remains enrolled for the rest of the year. From January through June, she had self-only HSA-qualifying HDHP coverage and met all HSA eligibility conditions. Her employer contributed $900 for 2026; no other contributions have been made. The 2026 self-only base limit is $4,400, and the age-55 catch-up is $1,000 annually. What additional contribution may she make for 2026 without creating an excess?
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Correct answer: B - $1,800
Question 3
Beginning January 1, 2026, an otherwise HSA-eligible employee with self-only HDHP coverage joins a direct primary care arrangement charging $175 per month for her alone. It provides care before the HDHP deductible and satisfies the statutory provider and service requirements; the fixed fee is the sole compensation for that care. She pays the fees herself without other reimbursement, and her HSA was established the previous year. How does membership affect contribution eligibility and tax-free payment of the fees?
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Correct answer: C - Membership prevents contribution eligibility; the full $175 fee remains eligible for tax-free HSA payment.
Domain 2: ACA Compliant - Advanced Planning Techniques, Part 2
Question 4
"The administrator is not a fiduciary," states a TPA service agreement. In practice, the TPA interprets ambiguous plan provisions and exercises final discretionary authority over benefit determinations. The employer retains the power to amend the plan. Under ERISA, the TPA is:
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Correct answer: C - A fiduciary for its discretionary benefit determinations, despite the contractual disclaimer.
Domain 3: Preparing for and Surviving a DOL Audit
Question 5
A TPA confirms that an attacker is using a stolen administrator credential to download identifiable claims files. The downloads are continuing. The compromised account can be disabled without interrupting other client accounts. What should the incident lead direct first?
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Correct answer: D - Disable the compromised account, revoke active sessions, and preserve the relevant audit logs.
Domain 4: Best Practices
Question 6
A health plan's TPA needs an operative report to verify the procedure billed on a routine surgical claim. The TPA has a valid business associate agreement with the plan. The provider offers to send the patient's entire chart, including unrelated treatment records. Which instruction appropriately applies HIPAA's payment permission and minimum-necessary standard?
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Correct answer: A - Request only the operative report needed for payment review; a separate HIPAA authorization is unnecessary.
Domain 5: Cyber Liability
Question 7
A consultant is screening four private-sector ERISA welfare plans for the small-plan Form 5500 exemption. Each had 85 participants at the beginning of the plan year. All conditions other than the funding arrangement are satisfied, and no other filing exemption applies. Which plan must file because its funding arrangement prevents use of this exemption?
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Correct answer: A - Self-insured benefits paid directly from a trust funded solely by employer contributions.
Domain 6: Benefits Calendar
Question 8
A hospital uses the ACA look-back measurement method. An ongoing employee averaged 34 hours of service per week during a valid 12-month measurement period and was classified as full-time for the following January-December stability period. In April, a temporary scheduling change reduces the employee's hours to 22 per week. Employment continues, and no special change-in-status exception applies. For Section 4980H purposes, what happens to the employee's status?
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Correct answer: C - Continue full-time treatment through December while the employee remains employed.
Question 9
In 2026, an applicable large employer with 100 full-time employees offers its only medical plan to every full-time employee and dependent child. The plan qualifies as minimum essential coverage, and an actuarial estimate shows that it pays 64% of allowed benefit costs for a standard population. However, it excludes inpatient hospital services entirely. An otherwise eligible full-time employee declines the offer and receives a Marketplace premium tax credit. Which employer-shared-responsibility conclusion follows?
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Correct answer: B - Potential Section 4980H(b) liability: the hospital exclusion defeats minimum value despite the actuarial estimate.
Domain 7: HIPAA & HITECH
Question 10
For September 2025, an applicable large employer's active full-time employee was enrolled every day in its self-insured medical plan. The employee chose an enhanced option costing $710 per month for family coverage; self-only coverage in that option would cost $240. The lowest-cost self-only option providing minimum value was offered for $180. Line 14 of Form 1095-C is correctly coded 1E, and no multiemployer relief applies. Which entries belong on lines 15 and 16?