CRPC EXAM AND PRACTICE EXAM BUNDLE QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |ALREADY GRADED A+<\/p>\n\n\n\n
CRPC EXAM PRACTICE EXAM 2023-2024 ACTUAL
EXAM 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (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<\/p>\n\n\n\n
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.
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).<\/p>\n\n\n\n
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<\/p>\n\n\n\n
All of the following are disadvantages to performing an indirect rollover CRPC EXAM 2023-2024 ACTUAL EXAM 180 –B –D C) A 63-year-old spouse of the retired worker will receive at least 50% <\/p>\n","protected":false},"excerpt":{"rendered":" CRPC EXAM AND PRACTICE EXAM BUNDLE QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |ALREADY GRADED A+ CRPC EXAM PRACTICE EXAM 2023-2024 ACTUALEXAM 400 QUESTIONS AND CORRECT DETAILEDANSWERS WITH RATIONALES (VERIFIED ANSWERS)|ALREADY GRADED A+Which one of the following reasons for premature distributions fromqualified retirement plans does not avoid the 10% early withdrawalpenalty? – ANSWER- […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-131358","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/131358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=131358"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/131358\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=131358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=131358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=131358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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.
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.
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QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
When the client’s circumstances change, the asset management process
goes back to the data gathering step in the process. – A) realistic
B) clearly defined
C) long-term perspective
D) fluid
–D
An investment policy provides guidelines that are standards to be
followed. If they are fluid, they are ever-changing and therefore would
be difficult to implement and would provide inconsistency in the
management of the portfolio.
An investment policy provides guidelines that are standards to be
followed. If they are fluid, they are ever-changing and therefore would
be difficult to implement and would provide inconsistency in the
management of the portfolio. – A) tactical.
B) alpha.
C) core\/satellite.
D) strategic.<\/p>\n\n\n\n
Alpha is not an asset allocation strategy, but a way to measure a
portfolio manager’s return relative to the amount of risk that has been
taken.
Assume the following asset classes have the correlations to long-term
government bonds shown below:
Treasury bills:.12 Gold:-.25 Large stocks:.22 Small stocks:.17
Which one of the following correctly states the impact of diversification
on long-term government bonds? – A) Gold provides more
diversification than large stocks.
B) Small stocks provide more diversification than Treasury bills.
C) Treasury bills provide more diversification than gold.
D) Large stocks provide more diversification than small stocks.
–A
The asset with the lowest correlation provides the most
diversification. Therefore, gold provides more diversification than
any of the other assets.
What is the price of a bond with a 7% coupon, a $1,000 par value, and a
maturity of 20 years if the market interest rate for similar bonds is 6%? –
A) $1,074.39
B) $893.23
C) $1,000.00
D) $1,115.57<\/p>\n\n\n\n
Set the calculator for 2 P\/YR and use the END mode. The inputs then
are as follows: 1,000 [FV], 35 [PMT], 20 [SHIFT] [N] = 40, 6 [I\/YR],
and solve for PV = $1,115.57. Note: The $35 payment is the semiannual
payment of the bond. This is computed by taking the 7% coupon rate the
par value of $1,000 = $70 and divide that by 2 to get the semiannual
interest paid, in this case $35. Also, the yield to maturity (YTM) is less
than the coupon rate, thus the bond must be selling at a premium.
This year, your 63-year-old client had $17,025 of earned income and
$30,000 of investment income. He was also drawing Social Security
benefits. Which one of the following correctly describes the impact on
his Social Security benefits? – — There is no reduction to his benefits.
The client’s earnings (earned income) are below the allowable limit for
the current year ($18,240 for 2020). Remember that according to the
work penalty rule, only earned income is counted toward the “allowable
limit.”
Which one of the following is a correct statement about the amount of
Social Security retirement benefits available when a fully insured
worker’s retirement benefit begins at full retirement age (FRA)? – A) If
the spouse of the worker has attained FRA and is entitled to benefits on
their earning record, the benefit is the lesser of 100% of the spouse’s
own PIA or 50% of the worker’s PIA.
B) If the spouse is at or above his or her full retirement age when
commencing Social Security benefits, the spouse will receive at least
50% of the worker’s PIA.<\/p>\n\n\n\n
of the worker’s PIA.
D) The worker will receive 80% of his or her primary insurance amount
(PIA).
–B
The spouse who starts receiving benefits at his or her Social Security full
retirement age will receive 50% of the worker’s PIA unless the spouse’s
Social Security benefit is higher based on his or her own earnings.
(Note: The FRA began increasing for those workers who reached age 62
in the year 2000.) At full retirement age the worker will receive 100% of
PIA. The 50% of PIA is reduced for each month the spouse is under full
retirement age when benefits begin. A spouse who is at FRA and entitled
to benefits on their own working record would receive the higher of
100% of their own PIA or 50% of the spouse’s PIA.
Which one of the following is correct regarding most types of tax
exempt interest and the taxation of Social Security benefits? – A) 85% of
the tax-exempt interest is included in the computation of the taxation of
Social Security benefits.
B) All of the tax-exempt interest is included in the computation of the
taxation of Social Security benefits.
C) None of the tax-exempt interest is included in the computation of the
taxation of Social Security benefits.
D) 50% of the tax-exempt interest is included in the computation of the
taxation of Social Security benefits.
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