3/27/25, 8:54 CRPC Qbank 3,4,8 |
AM
CRPC QBANK 3,4,8 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
Terms in this set (74)
Mark, age 54, funded a nonqualified It will be fully taxable and subject to an early withdrawal penalty.
annuity with a $1,000 deposit. His annuity is
now worth $2,500. He would like to make a
$500 withdrawal. How will this
distribution be taxed?(LO 4-5)
if he or she began payments at full retirement age.
A worker's primary insurance amount (PIA)
is the amount they receive from Social
The PIA is the amount the worker would receive if he or she began payments at full
Security(LO 3-2)
retirement age.
8%.
For a worker whose full retirement age
is 66 or later, the annual delayed
For those whose full retirement age is 66, they will receive an 8% "raise" for each year
retirement credit percentage for the
they delay filing after FRA, up until a maximum age of 70. This equals to a total
years you delay receipt of benefits
increase of 32% above their primary insurance amount (PIA).
beyond (FRA) is(LO 3-2)
permanently reduced benefit amount.
Delaying receipt of benefits (for example
Delaying receipt of benefits will allow you to earn delayed retirement credits,
until age 70) will result in all of the
and your future cost-of-living adjustments will be higher because they will be based
following except(LO 3-2)
on a higher base. Also, the increased base will ultimately be used to determine
survivor benefits.
higher annual cost-of-living adjustments.
The following will result if you delay receipt
receipt of delayed retirement credits.
of benefits until 70 (LO 3-2)
larger survivor benefits for the surviving spouse.
Ann, who was born in 1953, has reached two years from now
her full retirement age (FRA):
age 66 in 2019. She can elect to receive By delaying two years, her benefit will increase 16%, to $1,160. Forfeiting: $1,000 × 24
$1,000 now, or delay receipt by two years. months = $24,000 Gaining: $160/month 24,000 / $160 = 150 months or 12.5 years Ann
She expects to live until age 90. Ignoring would need to live until 78½ to "break even." Because she is expecting to live until
outside factors, when should she begin her age 90, she should opt to delay receipt of benefits.
benefits?(LO 3-3)
Michael, a 62-year-old single man, is Nothing because his income is below $17,640(earnings cap for singles)
considering beginning his Social Security
benefits to supplement his income of
$14,000 per year. How much will he lose
in Social Security benefits due to the
earned income restrictions?(LO 3-4)
If provisional income exceeds the 85%
thresholds given, then a maximum of
________of Social Security benefits are
subject to taxation.(LO 3-3)
1/
8
, 3/27/25, 8:54 CRPC Qbank 3,4,8 |
AM
Brent and Carol have an AGI of $40,000 85%
and they receive a combined Social
Security benefit of $15,000. They have no Provisional income = $47,500. This is over the $44,000 threshold so 85% of their
tax-exempt income. What percentage of Social Security benefit will be subject to taxation.
their Social Security benefit will be subject
to taxation?(LO 3-3)
Spousal retirement benefits can be 62
claimed as early as age _.(LO 3-4)
Jeff and Betsy both attained age 66, their $1,200
FRA in 2019. Jeff's monthly benefit is $2,000
and Betsy's is $1,200. If they employ the Betsy, the spouse with the lower Social Security benefit, will take her own $1,200
"restricted application for spouses" benefit. .....and ....
strategy, Betsy will begin receiving $_____ Jeff will receive a $600 spousal benefit, deferring receipt of his own benefit until age
per month.(LO 3-3) 70.
Carla is collecting $600 per month from $100
a government pension and is also eligible
to receive a Social Security spousal benefit Due to the GPO, her Social Security spousal benefit will be reduced by 2/3 of her
of state government pension amount, or $400. $500 - $400 = $100.
$500 per month. Due to the GPO, her
Social Security spousal benefit will be
reduced to________.(LO 3-4)
David began receiving Social Security June 2020
benefits in June 2019. He later learned that
he should have delayed receipt of his Claimants have 12 months from the date they filed their original claim to pay back
benefits until a later age. He has until _______ to all payments, and they can then refile for increased benefits at a later date.
pay back all payments and refile for
increase benefits at a future date.(LO 3-4)
Claimants have___months from the date 12 months
they filed their original claim to pay back all
payments, and they can then refile for
increased benefits at a later date if they
realized they should have delayed benefits.
Jerry was born in 1954. What age does 66
Social Security consider to be his full
retirement age (FRA)?(LO 3-2) Persons born in 1943-1954 would have an FRA of 66.
What is the FRA for someone born 66
between 1943-1954?
Mary is 66 years old and receives full old- Ralph will get Mary full $1,200
age benefits from Social Security—in her
case, $1,200 per month. Her husband
Ralph, age 66, who has not worked enough
quarters outside the home to be covered in
his own right, receives 50% of what Mary
receives each month ($600). Assume that
Mary dies tomorrow. What will Ralph's
Social Security benefit be?(LO 3-4)
Bob and Helen Jones just won the If they file jointly, up to 85% of their Social Security benefit must be included in
lottery. The benefit this year will be gross income since their gross income is above the 44k limit.
$50,000, and it will increase over the next
19 years. Bob's monthly Social Security Lottery winnings are not considered earned income
2/
8
AM
CRPC QBANK 3,4,8 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
Terms in this set (74)
Mark, age 54, funded a nonqualified It will be fully taxable and subject to an early withdrawal penalty.
annuity with a $1,000 deposit. His annuity is
now worth $2,500. He would like to make a
$500 withdrawal. How will this
distribution be taxed?(LO 4-5)
if he or she began payments at full retirement age.
A worker's primary insurance amount (PIA)
is the amount they receive from Social
The PIA is the amount the worker would receive if he or she began payments at full
Security(LO 3-2)
retirement age.
8%.
For a worker whose full retirement age
is 66 or later, the annual delayed
For those whose full retirement age is 66, they will receive an 8% "raise" for each year
retirement credit percentage for the
they delay filing after FRA, up until a maximum age of 70. This equals to a total
years you delay receipt of benefits
increase of 32% above their primary insurance amount (PIA).
beyond (FRA) is(LO 3-2)
permanently reduced benefit amount.
Delaying receipt of benefits (for example
Delaying receipt of benefits will allow you to earn delayed retirement credits,
until age 70) will result in all of the
and your future cost-of-living adjustments will be higher because they will be based
following except(LO 3-2)
on a higher base. Also, the increased base will ultimately be used to determine
survivor benefits.
higher annual cost-of-living adjustments.
The following will result if you delay receipt
receipt of delayed retirement credits.
of benefits until 70 (LO 3-2)
larger survivor benefits for the surviving spouse.
Ann, who was born in 1953, has reached two years from now
her full retirement age (FRA):
age 66 in 2019. She can elect to receive By delaying two years, her benefit will increase 16%, to $1,160. Forfeiting: $1,000 × 24
$1,000 now, or delay receipt by two years. months = $24,000 Gaining: $160/month 24,000 / $160 = 150 months or 12.5 years Ann
She expects to live until age 90. Ignoring would need to live until 78½ to "break even." Because she is expecting to live until
outside factors, when should she begin her age 90, she should opt to delay receipt of benefits.
benefits?(LO 3-3)
Michael, a 62-year-old single man, is Nothing because his income is below $17,640(earnings cap for singles)
considering beginning his Social Security
benefits to supplement his income of
$14,000 per year. How much will he lose
in Social Security benefits due to the
earned income restrictions?(LO 3-4)
If provisional income exceeds the 85%
thresholds given, then a maximum of
________of Social Security benefits are
subject to taxation.(LO 3-3)
1/
8
, 3/27/25, 8:54 CRPC Qbank 3,4,8 |
AM
Brent and Carol have an AGI of $40,000 85%
and they receive a combined Social
Security benefit of $15,000. They have no Provisional income = $47,500. This is over the $44,000 threshold so 85% of their
tax-exempt income. What percentage of Social Security benefit will be subject to taxation.
their Social Security benefit will be subject
to taxation?(LO 3-3)
Spousal retirement benefits can be 62
claimed as early as age _.(LO 3-4)
Jeff and Betsy both attained age 66, their $1,200
FRA in 2019. Jeff's monthly benefit is $2,000
and Betsy's is $1,200. If they employ the Betsy, the spouse with the lower Social Security benefit, will take her own $1,200
"restricted application for spouses" benefit. .....and ....
strategy, Betsy will begin receiving $_____ Jeff will receive a $600 spousal benefit, deferring receipt of his own benefit until age
per month.(LO 3-3) 70.
Carla is collecting $600 per month from $100
a government pension and is also eligible
to receive a Social Security spousal benefit Due to the GPO, her Social Security spousal benefit will be reduced by 2/3 of her
of state government pension amount, or $400. $500 - $400 = $100.
$500 per month. Due to the GPO, her
Social Security spousal benefit will be
reduced to________.(LO 3-4)
David began receiving Social Security June 2020
benefits in June 2019. He later learned that
he should have delayed receipt of his Claimants have 12 months from the date they filed their original claim to pay back
benefits until a later age. He has until _______ to all payments, and they can then refile for increased benefits at a later date.
pay back all payments and refile for
increase benefits at a future date.(LO 3-4)
Claimants have___months from the date 12 months
they filed their original claim to pay back all
payments, and they can then refile for
increased benefits at a later date if they
realized they should have delayed benefits.
Jerry was born in 1954. What age does 66
Social Security consider to be his full
retirement age (FRA)?(LO 3-2) Persons born in 1943-1954 would have an FRA of 66.
What is the FRA for someone born 66
between 1943-1954?
Mary is 66 years old and receives full old- Ralph will get Mary full $1,200
age benefits from Social Security—in her
case, $1,200 per month. Her husband
Ralph, age 66, who has not worked enough
quarters outside the home to be covered in
his own right, receives 50% of what Mary
receives each month ($600). Assume that
Mary dies tomorrow. What will Ralph's
Social Security benefit be?(LO 3-4)
Bob and Helen Jones just won the If they file jointly, up to 85% of their Social Security benefit must be included in
lottery. The benefit this year will be gross income since their gross income is above the 44k limit.
$50,000, and it will increase over the next
19 years. Bob's monthly Social Security Lottery winnings are not considered earned income
2/
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