NEW CRPC FINAL EXAM
FORM A AND
B EXAM QUESTIONS WITH ANSWERS TESTED AND
APPROVED!!!
James and Doris Stewart, both age 40, will contribute a total of $12,000 to their
IRAs for 2022. They both work outside the home, and they file a joint tax
return. James is a teacher at the local high school and contributes to a TSA.
Doris's employer has no retirement plan. Their adjusted gross earnings for this
year will be $117,000. What amount can they deduct for their IRA
contributions?
A)
$6,000
B)
$9,600
C)
$8,800
D)
$12,000 --CORRECT ANSWER--B
Charlie contributed $2,000 to Roth IRA 1 last year, when he was age 24, and
$2,000 to Roth
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,IRA 2 this year. Two years from now, Roth IRA 1 will have a balance of
$2,650, and Roth IRA 2 will have a balance of $2,590, and Charlie will close
Roth IRA 1, receiving the balance of $2,650. Which one of the following
statements best describes his tax and penalty status for that year?
A)
He cannot make any withdrawals because the money has not been in the Roth
IRA for five years or longer.
B)
He will not pay taxes or a penalty.
C)
He only pays ordinary taxes because Roth IRA distributions are not subject to a
penalty.
D)
He must pay taxes and a penalty on the full distribution. --CORRECT
ANSWER--B
The "required beginning date" (RBD) for IRA distributions is which one of the
following?
A)
April 1 of the year following the year in which age 72 was attained
B)
April 15 of the year following the year in which age 72 was attained
C)
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,April 15 of the year in which age 72 was attained
D)
April 1 of the year in which age 72 was attained --CORRECT ANSWER--A
Over a period of 10 years, Mark contributed a total of $20,000 to a
nondeductible IRA. The current value of Mark's IRA is $40,000, and Mark, who
is now age 45, has decided to use all of his IRA assets for the down payment on
a second home. Assuming Mark's marginal tax bracket is 35%, how much does
he owe in taxes and penalties?
A)
$2,000
B)
$9,000
C)
$7,000
D)
$14,000 --CORRECT ANSWER--B
Richard, age 45, and his wife Betty, age 44, plan to contribute a total of $12,000
to their IRAs for 2022. They both work outside the home, and they file a joint
income tax return. Richard is a teacher at the local high school and participates
in a 403(b) plan. Betty's employer does not provide a retirement plan. They
expect that their adjusted gross income for the year will be $150,000.
What amount, if any, can they deduct for their IRA contributions?
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, A)
$6,000
B)
$12,000
C)
$4,900
D)
$5,900 --CORRECT ANSWER--A
Susan has reached full retirement age (FRA). She is trying to decide between
starting Social Security benefits of $1,000 per month now, or delaying receipt
for three years and using her savings to provide current income. By delaying
three years her benefit would increase to $1,240 per month. Ignoring the time
value of money and cost-of-living adjustments, use the break-even calculation
to determine how much longer Susan will need to live in order for delaying to
"pay off."
A) She should delay only if she expects to live beyond the next 15½ years or
so.
B) She should delay beyond FRA regardless of her life expectancy in order
to maximize her lifetime benefit.
C) She should begin at FRA if she expects to live beyond the next three
years.
D) She should begin her benefits at FRA regardless of her life expectancy in
order to maximize her lifetime benefit. --CORRECT ANSWER--A
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FORM A AND
B EXAM QUESTIONS WITH ANSWERS TESTED AND
APPROVED!!!
James and Doris Stewart, both age 40, will contribute a total of $12,000 to their
IRAs for 2022. They both work outside the home, and they file a joint tax
return. James is a teacher at the local high school and contributes to a TSA.
Doris's employer has no retirement plan. Their adjusted gross earnings for this
year will be $117,000. What amount can they deduct for their IRA
contributions?
A)
$6,000
B)
$9,600
C)
$8,800
D)
$12,000 --CORRECT ANSWER--B
Charlie contributed $2,000 to Roth IRA 1 last year, when he was age 24, and
$2,000 to Roth
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,IRA 2 this year. Two years from now, Roth IRA 1 will have a balance of
$2,650, and Roth IRA 2 will have a balance of $2,590, and Charlie will close
Roth IRA 1, receiving the balance of $2,650. Which one of the following
statements best describes his tax and penalty status for that year?
A)
He cannot make any withdrawals because the money has not been in the Roth
IRA for five years or longer.
B)
He will not pay taxes or a penalty.
C)
He only pays ordinary taxes because Roth IRA distributions are not subject to a
penalty.
D)
He must pay taxes and a penalty on the full distribution. --CORRECT
ANSWER--B
The "required beginning date" (RBD) for IRA distributions is which one of the
following?
A)
April 1 of the year following the year in which age 72 was attained
B)
April 15 of the year following the year in which age 72 was attained
C)
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,April 15 of the year in which age 72 was attained
D)
April 1 of the year in which age 72 was attained --CORRECT ANSWER--A
Over a period of 10 years, Mark contributed a total of $20,000 to a
nondeductible IRA. The current value of Mark's IRA is $40,000, and Mark, who
is now age 45, has decided to use all of his IRA assets for the down payment on
a second home. Assuming Mark's marginal tax bracket is 35%, how much does
he owe in taxes and penalties?
A)
$2,000
B)
$9,000
C)
$7,000
D)
$14,000 --CORRECT ANSWER--B
Richard, age 45, and his wife Betty, age 44, plan to contribute a total of $12,000
to their IRAs for 2022. They both work outside the home, and they file a joint
income tax return. Richard is a teacher at the local high school and participates
in a 403(b) plan. Betty's employer does not provide a retirement plan. They
expect that their adjusted gross income for the year will be $150,000.
What amount, if any, can they deduct for their IRA contributions?
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, A)
$6,000
B)
$12,000
C)
$4,900
D)
$5,900 --CORRECT ANSWER--A
Susan has reached full retirement age (FRA). She is trying to decide between
starting Social Security benefits of $1,000 per month now, or delaying receipt
for three years and using her savings to provide current income. By delaying
three years her benefit would increase to $1,240 per month. Ignoring the time
value of money and cost-of-living adjustments, use the break-even calculation
to determine how much longer Susan will need to live in order for delaying to
"pay off."
A) She should delay only if she expects to live beyond the next 15½ years or
so.
B) She should delay beyond FRA regardless of her life expectancy in order
to maximize her lifetime benefit.
C) She should begin at FRA if she expects to live beyond the next three
years.
D) She should begin her benefits at FRA regardless of her life expectancy in
order to maximize her lifetime benefit. --CORRECT ANSWER--A
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