CDFA Exam Study Materials EXAM (updated
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Terms in this set (266)
An employee who has at least five 5-year cliff vesting
years of service must have a non-
forfeitable right to 100% of the
employee's accrued benefit [IRC
§411(a)(2)(A)].
An employee who has completed 3- to 7-year vesting (7-year graded vesting)
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)].
3-year cliff vesting or 6-year Top-heavy plans or matching contributions
graded vesting. typically use _________ vesting
,Schedule ____ may help identify Schedule A: Itemized Deductions
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 ____ identifies the assets Schedule B: Interest and Ordinary Dividends
and investments generating interest
and dividends.
Schedule ___ may be a place to hide Schedule C: Profit or Loss from Business
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 _______ 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 Schedule E: Supplemental Income and Loss
income from rental properties,
royalties, partnerships, and S-
corporation income. Depreciation
would be something to review.
Form _________ is used to report Form 1065
partnership income.
, Form __________ is used to report Form 1120
corporate income
Form ___________ is used to report Form 1120S
corporate income for S
corporations.
Schedule ____________________ includes Schedule 1: Additional Income and Adjustments
additional income, such as capital to Income
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 _________ details the Schedule 2 Tax
alternative minimum tax (ATM) or an
excess advance premium tax credit
repayment.
Schedule _________ is used to claim a Schedule 3 Nonrefundable Credits
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.
2026) Questions & Answers | With 100% Correct
Answers graded A+ Guaranteed Success!!
Save
Terms in this set (266)
An employee who has at least five 5-year cliff vesting
years of service must have a non-
forfeitable right to 100% of the
employee's accrued benefit [IRC
§411(a)(2)(A)].
An employee who has completed 3- to 7-year vesting (7-year graded vesting)
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)].
3-year cliff vesting or 6-year Top-heavy plans or matching contributions
graded vesting. typically use _________ vesting
,Schedule ____ may help identify Schedule A: Itemized Deductions
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 ____ identifies the assets Schedule B: Interest and Ordinary Dividends
and investments generating interest
and dividends.
Schedule ___ may be a place to hide Schedule C: Profit or Loss from Business
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 _______ 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 Schedule E: Supplemental Income and Loss
income from rental properties,
royalties, partnerships, and S-
corporation income. Depreciation
would be something to review.
Form _________ is used to report Form 1065
partnership income.
, Form __________ is used to report Form 1120
corporate income
Form ___________ is used to report Form 1120S
corporate income for S
corporations.
Schedule ____________________ includes Schedule 1: Additional Income and Adjustments
additional income, such as capital to Income
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 _________ details the Schedule 2 Tax
alternative minimum tax (ATM) or an
excess advance premium tax credit
repayment.
Schedule _________ is used to claim a Schedule 3 Nonrefundable Credits
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.
