CRPC EXAM 2 NEWEST ACTUAL EXAM COMPLETE 200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY GRADED + BRAND NEW!!.pdf

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CRPC PRACTICE EXAM 2|| ALL QUESTIONS AND CORRE
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CT ANSWERS|| LATEST AND COMPLETE VERSION WITH
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VERIFIED SOLUTIONS ALREADY GRADED A+|| BRAND n n n n n n



NEW!!!
What is the second step in the retirement planning process? -
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nANSWER: The second step in the retirement planning process is to gather client da
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ta, including goals and expectations
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What is the first step in the retirement planning process? -
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nANSWER: The first step is to establish and define the client-
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counselor relationship which includes disclosing the counselor's compensation arra
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ngement


What is the government health insurance program designed for individuals with low
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income or minimal assets regardless of their age or employment status? -
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nANSWER: Medicaid. n




The costs not covered by either Part A or Part B are referred to as what? -
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ANSWER: Medigaps. Medigap insurance is designed to supplement Medicare's be
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nefits by filling in some of what medicare does not cover including deductibles and c
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o-insurance amounts n




The delivery of Long Term Care generally takes one of two forms. What are they?
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- ANSWER: Personal care and Skilled care.
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In order to be considered a "qualified" policy, a long-
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term care policy must provide for what? -
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nANSWER: Nonforfeiture options, cognitive impairment must be covered, it must b
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e guaranteed renewable and conform to the National Association of Insurance Comm
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issioners Model Act. n n

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What is a golden parachute plan? -
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ANSWER: An arrangement between an employer and an executive that will provid
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e the executive with severance benefits if the employer is sold and the new employee
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fires the executive.
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If you take a hardship distribution from your TSA, what would be the tax consequen
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ces? - n


nANSWER: Hardship withdrawals that are used to pay certain medical expenses wo
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uld be subject to income tax but not to the 10% tax penalty.
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What kind of distribution from a 403b would NOT be subject to the 10% premature
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withdrawal penalty? - ANSWER: A QDRO. n n n n n




What kind of distribution would be exempt from the 10% penalty on a qualified plan
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distribution before age 59.5? - n n n n


ANSWER: Substantial equal periodic payments made to a participant following se
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paration of service based on the participants life expectancy.
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Are withdrawals from an IRA to pay for qualified expenses exempt from the 10% ea
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rly withdrawal penalty? - ANSWER: Yes.
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Dan, age 58 has decided to being periodic withdrawals from his IRA. In order to avoi
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d the 10% early withdrawal penalty, distributions must continue until at least what a
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ge? - n


ANSWER: Age 63. Distributions must continue for at least five years or until the in
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dividual has reached 59.5, whichever is later.
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When is the distribution on a Roth IRA qualified? -
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ANSWER: If the five year holding period has been met and the distribution is made
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after the attainment of age 59.5, death or disability or for the first time purchase of a
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home (max is $10k). n n n

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A "rising equity glidepath" typically will lead to a
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equity exposure over n n n


one's total lifetime. - ANSWER: Decreased. Remember: RISING = decrease.
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HIGH = Low. n n




What is the long term capital gain holding period? -
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ANSWER: More than 12 months.
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Net short-term capital gains are treated as what type of income? - ANSWER:
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Ordinary. They are subject to the taxpayers regular marginal tax rate.
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How much can a single person exclude on the sale of their home? -
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nANSWER: Up to $250,000.00, provided the home has been used as the principal res
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idence for two of the previous five years.
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A partial exclusion is available if the two year rule is not met due to health, job or oth
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er unforeseen circumstances.
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What can a will NOT be used for? -
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ANSWER: Planning for incapacity, avoiding probate, or to transfer assets during t
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he life of the owner.
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Wills, beneficiary designations, and correct titling of property can all accomplish w
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hat when it comes to estate planning goals? -
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ANSWER: Assure that property is distributed according to the owner's wishes.
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What is the duty to disclose? -
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ANSWER: Requires you to explain the risks of investments sold to clients even those b
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acked by the US government.
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What is the duty to diagnose? -
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ANSWER: Includes knowing the customer and making sure that the investment recom
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mendations are suitable for the customer. n n n n n

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Why is owning property in joint tenancy with right of survivorship a will substitute?
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- ANSWER: Because the property passes outside of probate.
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Intestate property passes by means of what? -
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nANSWER: The probate process. It is NOT a will substitute. Property that passes by
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nthe laws of intestate succession is not affected y any will provisions. Intestate succe
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ssion statues give property to many other family members before transferring it to th
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e state.
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The donee's basis in gifted property is determined by what valuation? -
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nANSWER: The donor's adjusted basis in the property at the time of the gift if the pro
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perty has appreciated in value while owned by the donor AND the property's Fair Ma
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rket Value at the time of the gift if this value is less than the donor's adjusted basis and
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nthe property is sold at a loss.
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What is a characteristic of the unified tax system that is NOT common to both federa
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l gift taxation and federal estate taxation? -
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nANSWER: Availability of the annual exclusion amount. n n n n n n




What must a donor do for the federal gift tax to apply? -
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ANSWER: They must give up control of the property.
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What is the Federal Gift Tax exclusion and what must someone do to qualify for it? -
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nANSWER: It is the maximum amount of present interest gifts allowed per donee pe
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r year or the actual amount given to the donee, whichever is less. To qualify, a donor
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must make a completed gift of a PRESENT interest which may be either partial or w
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hole.


Sequence of return risk is thought to have the most potential impact on an individual
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who has what? -
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ANSWER: Just retired and begun distributions from his or her account.
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