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CRPC EXAM PRACTICE EXAM ACTUAL EXAM 390 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ $21.99
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CRPC EXAM PRACTICE EXAM ACTUAL EXAM 390 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
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CRPC EXAM PRACTICE EXAM ACTUAL EXAM 390 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ CRPC EXAM PRACTICE EXAM ACTUAL EXAM 390 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

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  • November 24, 2023
  • 64
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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  • crpc exam
  • crpc exam practice exam
  • crpc exam practice exam actual exam 390

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  • CRPC
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CRPC EXAM PRACTICE EXAM 2023-2024 ACTUAL EXAM 390
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Which one of the following reasons for premature distributions from qualified
retirement plans does not avoid the 10% early withdrawal penalty? - ANSWER-
Payment of income taxes


Which one of the following usually does not represent a possible retirement
income source for people contemplating retirement? - ANSWER-Use assets


People generally - ANSWER-have not calculated the amount they will need for
retirement.


As a retiring employee, Carla is slated to receive 3% of her average salary over her
last three years with ABC Company times her years of service. Since her average
salary during those last three years was $110,000 and she has put in 20 years of
service, her annual retirement benefit will be - ANSWER-$66,000.


Non-Roth distributions from a qualified plan that are attributable to employer
contributions are fully taxable in the year that the employee receives these
distributions. Taxation can be reduced or delayed by which one of the following
tactics? - ANSWER-Rolling over the benefits into an IRA


Assuming that John, age 55, can earn 6% on his investment, how much will he
need to contribute to his IRA at the end of each year in order to accumulate
$500,000 by the time he retires at age 65? - ANSWER-$37,934


Questions such as "Where do you want to live?", "What does retirement look like
to you?", and "How do you see yourself spending time in retirement?" have to do
primarily with which aspect of retirement planning? - ANSWER-Emotional
preparedness.

, CRPC EXAM PRACTICE EXAM 2023-2024 ACTUAL EXAM 390
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Flexible retirement arrangements, including participating in a phased retirement
plan, are appealing to employees - ANSWER-who are concerned about the
abrupt transition to full-time retirement.


Labor markets are becoming friendlier to older workers for all of the following
reasons except - ANSWER-employers can stop providing employee health
benefits for employees on Medicare.


IRAs permit distributions without a 10% early withdrawal penalty in all of the
following situations except - ANSWER-attainment of age 55.


COBRA - ANSWER-must provide continued coverage for 18 months (36 in
certain situations).


Exceptions to the 10% early withdrawal penalty for distributions taken from a
401(k) prior to age 59 include all of the following except - ANSWER-
distributions for a first-time home purchase, up to $10,000.


Tin parachutes apply to - ANSWER-middle-management employees.


All of the following apply to voluntary early retirement programs except -
ANSWER-they should be analyzed based on their future value.


In-service withdrawals prior to age 62 are not permitted from which of the
following? - ANSWER-Cash balance plans


The IRS permits hardship withdrawals from 401(k) plans in cases of "immediate
and heavy financial need." Which of the following is not considered immediate and

, CRPC EXAM PRACTICE EXAM 2023-2024 ACTUAL EXAM 390
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
heavy? - ANSWER-Payments to prevent defaulting on a mortgage for a
vacation home


Before rolling assets from an employer sponsored plan to an IRA, one should
consider which of the following? - ANSWER-all


Taxes may be deferred on a qualified plan distribution if it is rolled over to an IRA,
TSA, SEP, governmental 457 plan, or to another qualified plan. All are true
regarding rollovers except - ANSWER-they generally result in less money for
retirement.


All of the following are disadvantages to performing an indirect rollover from a
qualified plan to an existing IRA except - ANSWER-the entire distribution will
be subject to immediate taxation.


Not all distributions from a qualified plan may be rolled over into a traditional
IRA. Which one of the following distributions is an "eligible rollover distribution"?
- ANSWER-The vested cash balance in the plan


When must the designated beneficiary be determined in order to avoid having to
distribute the full IRA balance under the five-year rule? - ANSWER-September
30 of the year following the participant's death.


Distributions from qualified plans, 403(b) plans, SEPs, SIMPLEs, and IRAs are
assessed a 10% penalty if they are taken before age 59. There are exceptions to this
rule. Which of the following is not an exception to this penalty? - ANSWER-The
distribution is made to pay homeowners insurance.

, CRPC EXAM PRACTICE EXAM 2023-2024 ACTUAL EXAM 390
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Which of the following is not a step in determining the best plan distribution
option? - ANSWER-Compare the options to what the plan may offer in the
future


Once selected, beneficiaries of a qualified profit sharing plan can be changed -
ANSWER-at any time.


Participant loans are permitted from - ANSWER-qualified plans and 403(b)s.


Which of the following statements is correct about qualified joint survivor
annuities (QJSAs)? - ANSWER-All pension plans must offer QJSAs.


Which of the following events would result in income taxation to a plan
participant? - ANSWER-The participant takes a distribution from a qualified
plan and rolls it over into an IRA 75 days later.


The funds from a 403(b) plan may be rolled over into all of the following except -
ANSWER-a nongovernmental 457 plan.


Jeffrey died after beginning his required minimum distribution payments. He has
named his daughter, age 48, as the sole beneficiary of his IRA. Which one of the
following statements is correct regarding her options for this IRA according to the
SECURE Act? - ANSWER-As a designated beneficiary she must distribute the
full account balance within 10 years.


To remain qualified, pension plans must prohibit in-service withdrawals until
employees reach age - ANSWER-62

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