CDFA Exam Study Materials with Verified Answers 2024 Update
An employee who has at least five years
of service must have a non-forfeitable
5-year cliff vesting
right to 100% of the employee's accrued
benefit [IRC §411(a)(2)(A)].
An employee who has completed at
least three years of service must have
a non-forfeitable right to at least the fol-
lowing percentages of his or her accrued
3- to 7-year vesting (7-year graded vest-
benefit: 20% after three years of service,
ing)
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 contribu- 3-year cliff vesting or 6-year graded vest-
tions typically use vesting ing.
Schedule may help identify unlisted
assets or sources of income. For exam-
ple, property taxes may reveal real prop-
Schedule A: Itemized Deductions
erty or a boat that one spouse does not
know exists; and gambling losses would
reveal that there are gambling winnings.
Schedule identifies the assets and
Schedule B: Interest and Ordinary Divi-
investments generating interest and div-
dends
idends.
Schedule may be a place to hide
assets or income. For example, depreci-
ation expense is not a cash outflow and
Schedule C: Profit or Loss from Business should sometimes be added back to net
income to determine actual income. The
depreciation schedule may also reveal
additional assets in the business.
Schedule is used to report
Schedule D: Capital Gains and Losses gains and losses from the sale of stocks,
bonds, and real estate.
Schedule is used to report income
from rental properties, royalties, partner-
, CDFA Exam Study Materials with Verified Answers 2024 Update
Schedule E: Supplemental Income and ships, and S-corporation income. Depre-
Loss ciation would be something to review.
Form is used to report part-
Form 1065
nership income.
Form is used to report cor-
Form 1120
porate income
Form is used to report cor-
Form 1120S
porate income for S corporations.
Schedule in-
cludes additional income, such as capi-
tal gains, unemployment compensation,
Schedule 1: Additional Income and Ad-
prize or award money, and gambling win-
justments to Income
nings. It also includes deductions such
as student loan interest, self-employ-
ment tax, and educator expenses.
Schedule details the alter-
Schedule 2 Tax native minimum tax (ATM) or an excess
advance premium tax credit repayment.
Schedule is used to claim a
nonrefundable credit other than the child
Schedule 3 Nonrefundable Credits tax credit or the credit for other depen-
dents, such as the foreign tax credit, edu-
cation credits, or general business credit.
Schedule reports other
taxes, such as self-employment tax,
Schedule 4 Other Taxes household employment taxes, additional
tax on IRAs or other qualified retirement
plans and tax-favored accounts.
Schedule is used to claim a
Schedule 5: Other Payments and Re- refundable credit other than the earned
fundable Credits income credit, American opportunity
credit, or additional child tax credit.
Form reports deductions for
Form 4562 depreciation and amortization as well as
provides information on the business/in-
,CDFA Exam Study Materials with Verified Answers 2024 Update
vestment use of automobiles and other
listed property.
Form reports the sale or
exchange of business property and the
Form 4797
computation of recapture amounts under
sections 179 and 280F(b)(2).
An is a person
who is qualified to keep, audit, and in-
Accountant spect the financial records of individu-
als or business concerns and prepares
financial and tax reports.
An is a person whose
work is to calculate statistically risks, pre-
Actuary
miums, and life expectancies for insur-
ance and pension plans.
An person who is
legally qualified and licensed to repre-
Attorney
sent a person in a legal matter, such as
a transaction or lawsuit.
A is an individual
Business Valuator who is trained in evaluating and assign-
ing a value to a business.
A is the legal pro-
ceeding by which a marriage is legally
terminated. It may be contested (where
Divorce
one party denies the allegation or wants
to keep the marriage in place) or uncon-
tested.
A is an individual
who has been trained to assist people
Mediator in coming to an agreement, especially
one that reconciles differences between
disputants.
A is an in-
Pension Valuator dividual who is qualified to calculate the
value of defined benefit pension plans,
, CDFA Exam Study Materials with Verified Answers 2024 Update
such as the marital portion of a plan for
the division of assets in a divorce.
is submitting a dis-
puted matter for decision to a person who
Arbitration is not a judge. The decision of an arbitra-
tor is usually binding and final. Arbitration
varies greatly from mediation.
is
a discretionary legal standard used by
Best Interest of the Child judges when making decisions about
custody, visitation, and support for a child
when the parents are divorcing.
A is a
change of judges or geographical loca-
Change of Venue tion, requested by a party to the action
who feels that the change is justified by
state law.
A is
a team approach to divorce in which di-
vorcing couples obtain professional help
from specialists in the legal, financial,
Collaborative Divorce
and mental health fields; when need-
ed, additional professionals (including
child/parenting experts) may be called in
to help the couple settle their case.
is
a new dispute resolution model in
which each party retains their own at-
torney who has gone through special-
ized " "
training. The lawyer's only job is to help
Collaborative Law
settle the dispute. All parties agree to
work together respectfully, honestly, and
in good faith to try to find "win-win" so-
lutions to the legitimate needs of both
parties. No one may go to court, or even
threaten to do so. If that should occur,
An employee who has at least five years
of service must have a non-forfeitable
5-year cliff vesting
right to 100% of the employee's accrued
benefit [IRC §411(a)(2)(A)].
An employee who has completed at
least three years of service must have
a non-forfeitable right to at least the fol-
lowing percentages of his or her accrued
3- to 7-year vesting (7-year graded vest-
benefit: 20% after three years of service,
ing)
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 contribu- 3-year cliff vesting or 6-year graded vest-
tions typically use vesting ing.
Schedule may help identify unlisted
assets or sources of income. For exam-
ple, property taxes may reveal real prop-
Schedule A: Itemized Deductions
erty or a boat that one spouse does not
know exists; and gambling losses would
reveal that there are gambling winnings.
Schedule identifies the assets and
Schedule B: Interest and Ordinary Divi-
investments generating interest and div-
dends
idends.
Schedule may be a place to hide
assets or income. For example, depreci-
ation expense is not a cash outflow and
Schedule C: Profit or Loss from Business should sometimes be added back to net
income to determine actual income. The
depreciation schedule may also reveal
additional assets in the business.
Schedule is used to report
Schedule D: Capital Gains and Losses gains and losses from the sale of stocks,
bonds, and real estate.
Schedule is used to report income
from rental properties, royalties, partner-
, CDFA Exam Study Materials with Verified Answers 2024 Update
Schedule E: Supplemental Income and ships, and S-corporation income. Depre-
Loss ciation would be something to review.
Form is used to report part-
Form 1065
nership income.
Form is used to report cor-
Form 1120
porate income
Form is used to report cor-
Form 1120S
porate income for S corporations.
Schedule in-
cludes additional income, such as capi-
tal gains, unemployment compensation,
Schedule 1: Additional Income and Ad-
prize or award money, and gambling win-
justments to Income
nings. It also includes deductions such
as student loan interest, self-employ-
ment tax, and educator expenses.
Schedule details the alter-
Schedule 2 Tax native minimum tax (ATM) or an excess
advance premium tax credit repayment.
Schedule is used to claim a
nonrefundable credit other than the child
Schedule 3 Nonrefundable Credits tax credit or the credit for other depen-
dents, such as the foreign tax credit, edu-
cation credits, or general business credit.
Schedule reports other
taxes, such as self-employment tax,
Schedule 4 Other Taxes household employment taxes, additional
tax on IRAs or other qualified retirement
plans and tax-favored accounts.
Schedule is used to claim a
Schedule 5: Other Payments and Re- refundable credit other than the earned
fundable Credits income credit, American opportunity
credit, or additional child tax credit.
Form reports deductions for
Form 4562 depreciation and amortization as well as
provides information on the business/in-
,CDFA Exam Study Materials with Verified Answers 2024 Update
vestment use of automobiles and other
listed property.
Form reports the sale or
exchange of business property and the
Form 4797
computation of recapture amounts under
sections 179 and 280F(b)(2).
An is a person
who is qualified to keep, audit, and in-
Accountant spect the financial records of individu-
als or business concerns and prepares
financial and tax reports.
An is a person whose
work is to calculate statistically risks, pre-
Actuary
miums, and life expectancies for insur-
ance and pension plans.
An person who is
legally qualified and licensed to repre-
Attorney
sent a person in a legal matter, such as
a transaction or lawsuit.
A is an individual
Business Valuator who is trained in evaluating and assign-
ing a value to a business.
A is the legal pro-
ceeding by which a marriage is legally
terminated. It may be contested (where
Divorce
one party denies the allegation or wants
to keep the marriage in place) or uncon-
tested.
A is an individual
who has been trained to assist people
Mediator in coming to an agreement, especially
one that reconciles differences between
disputants.
A is an in-
Pension Valuator dividual who is qualified to calculate the
value of defined benefit pension plans,
, CDFA Exam Study Materials with Verified Answers 2024 Update
such as the marital portion of a plan for
the division of assets in a divorce.
is submitting a dis-
puted matter for decision to a person who
Arbitration is not a judge. The decision of an arbitra-
tor is usually binding and final. Arbitration
varies greatly from mediation.
is
a discretionary legal standard used by
Best Interest of the Child judges when making decisions about
custody, visitation, and support for a child
when the parents are divorcing.
A is a
change of judges or geographical loca-
Change of Venue tion, requested by a party to the action
who feels that the change is justified by
state law.
A is
a team approach to divorce in which di-
vorcing couples obtain professional help
from specialists in the legal, financial,
Collaborative Divorce
and mental health fields; when need-
ed, additional professionals (including
child/parenting experts) may be called in
to help the couple settle their case.
is
a new dispute resolution model in
which each party retains their own at-
torney who has gone through special-
ized " "
training. The lawyer's only job is to help
Collaborative Law
settle the dispute. All parties agree to
work together respectfully, honestly, and
in good faith to try to find "win-win" so-
lutions to the legitimate needs of both
parties. No one may go to court, or even
threaten to do so. If that should occur,
