CDFA Exam Study Materials Latest Update Graded A+

CDFA Exam Study Materials Latest Update Graded A+ 5-year cliff vesting An employee who has at least five years of service must have a nonforfeitable right to 100% of the employee's accrued benefit [IRC §411(a)(2)(A)]. 3- to 7-year vesting (7-year graded vesting) An employee who has completed at least three years of service must have a non-forfeitable right to at least the following percentages of his or her accrued benefit: 20% after three years of service, 40% after four years of service, 60% after five years of service, 80% after six years of service, and 100% after seven years of service [IRC §411(a)(2)(B)]. Top-heavy plans or matching contributions typically use _________ vesting 3-year cliff vesting or 6-year graded vesting. Schedule A: Itemized Deductions Schedule ____ may help identify unlisted assets or sources of income. For example, property taxes may reveal real property or a boat that one spouse does not know exists; and gambling losses would reveal that there are gambling winnings. Schedule B: Interest and Ordinary Dividends Schedule ____ identifies the assets and investments generating interest and dividends. Schedule C: Profit or Loss from Business Schedule ___ may be a place to hide assets or income. For example, depreciation expense is not a cash outflow and should sometimes be added back to net income to determine actual income. The depreciation schedule may also reveal additional assets in the business. Schedule D: Capital Gains and Losses Schedule _______ is used to report gains and losses from the sale of stocks, bonds, and real estate. Schedule E: Supplemental Income and Loss Schedule _____ is used to report income from rental properties, royalties, partnerships, and S-corporation income. Depreciation would be something to review. Form 1065 Form _________ is used to report partnership income. Form 1120 Form __________ is used to report corporate income Form 1120S Form ___________ is used to report corporate income for S corporations. Schedule 1: Additional Income and Adjustments to Income Schedule ____________________ includes additional income, such as capital gains, unemployment compensation, prize or award money, and gambling winnings. It also includes deductions such as student loan interest, self-employment tax, and educator expenses. Schedule 2 Tax Schedule _________ details the alternative minimum tax (ATM) or an excess advance premium tax credit repayment. Schedule 3 Nonrefundable Credits Schedule _________ is used to claim a nonrefundable credit other than the child tax credit or the credit for other dependents, such as the foreign tax credit, education credits, or general business credit. Schedule 4 Other Taxes Schedule ___________ reports other taxes, such as self-employment tax, household employment taxes, additional tax on IRAs or other qualified retirement plans and tax-favored accounts. Schedule 5: Other Payments and Refundable Credits Schedule _________ is used to claim a refundable credit other than the earned income credit, American opportunity credit, or additional child tax credit. Form 4562 Form _________ reports deductions for depreciation and amortization as well as provides information on the business/investment use of automobiles and other listed property. Form 4797 Form ___________ reports the sale or exchange of business property and the computation of recapture amounts under sections 179 and 280F(b)(2). Accountant An __________________ is a person who is qualified to keep, audit, and inspect the financial records of individuals or business concerns and prepares financial and tax reports. Actuary An ___________ is a person whose work is to calculate statistically risks, premiums, and life expectancies for insurance and pension plans. Attorney An ________________ person who is legally qualified and licensed to represent a person in a legal matter, such as a transaction or laws