CRPC PRACTICE EXAM 3 COMPLETE QUESTIONS WITH VERIFIED ANSWERS

CRPC PRACTICE EXAM 3 COMPLETE QUESTIONS
WITH VERIFIED ANSWERS
• What does CRPC stand for?

• Certified Retirement Planning Counselor
• Chartered Retirement Planning Counselor
• Certified Retirement Planning Consultant
• Chartered Retirement Planning Consultant

• Which of the following is the primary focus of retirement
planning?

• Ensuring sufficient income during retirement
• Maximizing investment returns
• Minimizing tax liability
• Diversifying investment portfolios

• Which of the following is a qualified retirement plan?

• 401(k) plan
• Whole life insurance policy
• Non-qualified deferred compensation plan
• Roth IRA

• Which of the following is a characteristic of a Roth IRA?

• Tax-deductible contributions
• Tax-free withdrawals
• Required minimum distributions
• Employer matching contributions

• At what age can individuals typically start taking Social Security
retirement benefits?

• 55

, • 59 ½
• 62
• 66 or 67 (depending on birth year)

• What is the maximum annual contribution limit for a 401(k) plan
for individuals under 50 years old (as of 2023)?

• $18,000
• $22,500
• $24,000
• $26,500

• Which of the following plans allows employers to make
discretionary contributions based on profits?

• Defined benefit plan
• Profit-sharing plan
• 403(b) plan
• Simple IRA

• What is a primary benefit of a Roth 401(k) over a traditional
401(k)?

• Higher contribution limits
• Employer matching
• Tax-free withdrawals
• Immediate tax deductions

• Which of the following is true about Required Minimum
Distributions (RMDs)?

• They must start by age 72
• They apply to Roth IRAs
• They are required for all retirement accounts
• They increase with each passing year

• Which type of annuity provides guaranteed payments for life?

, • Fixed-period annuity
• Lifetime annuity
• Variable annuity
• Deferred annuity

• Which of the following is a key advantage of a Health Savings
Account (HSA)?

• Contributions are tax-deductible
• Withdrawals for qualified medical expenses are tax-free
• No contribution limits
• Must be used within the year contributed

• Which of the following statements about traditional IRAs is
correct?

• Contributions are always tax-deductible
• Withdrawals are taxed as ordinary income
• Contributions are made with after-tax dollars
• Roth conversions are not allowed

• What is the main purpose of a defined benefit pension plan?

• Provide employee stock options
• Guarantee a specific retirement benefit
• Match employee contributions
• Offer flexible contribution amounts

• What is the maximum annual contribution limit for a Roth IRA
for individuals under 50 years old (as of 2023)?

• $5,500
• $6,500
• $7,000
• $7,500

• Which of the following is true about the Saver's Credit?

, • It is a tax credit for low- to moderate-income taxpayers who
contribute to retirement accounts
• It reduces taxable income dollar-for-dollar
• It is available to all taxpayers regardless of income
• It applies only to employer contributions

• Which of the following is a key feature of a Simplified Employee
Pension (SEP) IRA?

• Employer contributions are discretionary
• Employees can contribute directly
• Roth options are available
• Contributions are made with after-tax dollars

• What is a characteristic of a variable annuity?

• Fixed interest rates
• Investment returns are tied to market performance
• Guaranteed lifetime payments
• No investment options

• What is the penalty for early withdrawal from a traditional IRA
before age 59 ½?

• 5%
• 7.5%
• 10%
• 15%

• Which of the following retirement plans is designed specifically
for employees of public schools and certain tax-exempt
organizations?

• 401(k)
• 403(b)
• 457(b)