CRPC YOU GOT THIS STUDY CARDS
COMPREHENSIVE TEST PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
⫸ Flexibility is the key word that describes
whole life.
variable life.
term life.
universal life. Answer: universal life.
The key word for term life is low-cost (relative to other options). The
key word for whole life is guaranteed. For variable life, the key term is
variable. Universal life offers a significant degree of flexibility.
⫸ Sam, age 62, retired two years ago and is currently relying on his
Social Security retirement benefit for income. Faced with a tight budget,
Sam is considering going back to work. Which one of the following
would not be true if he returned to work?
-He may be eligible for employer-paid health care coverage.
-Regardless of the income he earns, he will continue to receive his full
Social Security benefit.
,-When he fully retires he will have fewer years of retirement to finance.
-He could establish and fund an IRA with his earned income. Answer:
Regardless of the income he earns, he will continue to receive his full
Social Security benefit.
Old-age benefits of Social Security recipients may be reduced if the
client earns income from wages and salary during retirement prior to
Social Security's full retirement age. Benefits paid to persons in the
years prior to attaining full retirement age are reduced by $1 for every $2
earned over the limit.
⫸ Earned income, as defined by the Internal Revenue Code, includes all
of the following except
alimony.
salary.
bonuses.
Social Security income. Answer: Social Security income.
Earned income only includes salary, fees, bonuses, commissions, and
taxable alimony.
,⫸ An individual is not considered an "active participant" in an
employer-sponsored defined contribution plan if they receive only which
one of the following annual additions?
interest
employee contributions
forfeitures Answer: interest
Only employee and employer contributions and forfeitures result in
active participant status. Investment earnings credited to an individual's
account do not.
⫸ Jane Pascheon has contributed $1,000 each year to a Roth IRA,
beginning with an initial payment of $500 on December 31, 2014. At
which date will she meet the requirement that qualifies her for tax-free
distributions of gains in her account? Answer: January 1, 2019
A Roth IRA owner is required to hold the account for a minimum of five
years to qualify for tax-free distributions, starting on January 1st of the
year the first contribution is made. The clock started on January 1, 2014,
so five years will have elapsed on January 1, 2019. In addition, the
owner must be at least age 59½.
⫸ All of the following are true regarding Roth 401(k)s except
if an individual starts contributing to a Roth 401(k) and has an existing
Roth IRA, each account will have its own separate five-year clock.
, required minimum distributions apply.
the regular deferral limit is $19,000 in 2019.
a $1,000 catch-up provision is available to individuals age 50 and older.
Answer: a $1,000 catch-up provision is available to individuals age 50
and older.
In 2019, participants age 50 and older can contribute an additional
$6,000 as a catch-up provision; this is in addition to the regular deferral
limit of $19,000.
⫸ Which one of the following statements applies to fixed annuities?
Their objective is to outpace inflation.
The premiums are invested in the company's general account.
A rider can be added so that the value at death is guaranteed to be at
least equal to the amount of the premium investment.
Premium contributions purchase units of separate accounts. Answer: The
premiums are invested in the company's general account.
COMPREHENSIVE TEST PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
⫸ Flexibility is the key word that describes
whole life.
variable life.
term life.
universal life. Answer: universal life.
The key word for term life is low-cost (relative to other options). The
key word for whole life is guaranteed. For variable life, the key term is
variable. Universal life offers a significant degree of flexibility.
⫸ Sam, age 62, retired two years ago and is currently relying on his
Social Security retirement benefit for income. Faced with a tight budget,
Sam is considering going back to work. Which one of the following
would not be true if he returned to work?
-He may be eligible for employer-paid health care coverage.
-Regardless of the income he earns, he will continue to receive his full
Social Security benefit.
,-When he fully retires he will have fewer years of retirement to finance.
-He could establish and fund an IRA with his earned income. Answer:
Regardless of the income he earns, he will continue to receive his full
Social Security benefit.
Old-age benefits of Social Security recipients may be reduced if the
client earns income from wages and salary during retirement prior to
Social Security's full retirement age. Benefits paid to persons in the
years prior to attaining full retirement age are reduced by $1 for every $2
earned over the limit.
⫸ Earned income, as defined by the Internal Revenue Code, includes all
of the following except
alimony.
salary.
bonuses.
Social Security income. Answer: Social Security income.
Earned income only includes salary, fees, bonuses, commissions, and
taxable alimony.
,⫸ An individual is not considered an "active participant" in an
employer-sponsored defined contribution plan if they receive only which
one of the following annual additions?
interest
employee contributions
forfeitures Answer: interest
Only employee and employer contributions and forfeitures result in
active participant status. Investment earnings credited to an individual's
account do not.
⫸ Jane Pascheon has contributed $1,000 each year to a Roth IRA,
beginning with an initial payment of $500 on December 31, 2014. At
which date will she meet the requirement that qualifies her for tax-free
distributions of gains in her account? Answer: January 1, 2019
A Roth IRA owner is required to hold the account for a minimum of five
years to qualify for tax-free distributions, starting on January 1st of the
year the first contribution is made. The clock started on January 1, 2014,
so five years will have elapsed on January 1, 2019. In addition, the
owner must be at least age 59½.
⫸ All of the following are true regarding Roth 401(k)s except
if an individual starts contributing to a Roth 401(k) and has an existing
Roth IRA, each account will have its own separate five-year clock.
, required minimum distributions apply.
the regular deferral limit is $19,000 in 2019.
a $1,000 catch-up provision is available to individuals age 50 and older.
Answer: a $1,000 catch-up provision is available to individuals age 50
and older.
In 2019, participants age 50 and older can contribute an additional
$6,000 as a catch-up provision; this is in addition to the regular deferral
limit of $19,000.
⫸ Which one of the following statements applies to fixed annuities?
Their objective is to outpace inflation.
The premiums are invested in the company's general account.
A rider can be added so that the value at death is guaranteed to be at
least equal to the amount of the premium investment.
Premium contributions purchase units of separate accounts. Answer: The
premiums are invested in the company's general account.
