CSA CERTIFIED SENIOR ADVISOR EXAM 2026
MASTER REVIEW AND PRACTICE MANUAL
◉ In defined contribution plans, employees can choose how their
contributions are invested. Answer: TRUE
◉ In a defined benefit plans, the employee bears the investment risk.
Answer: FALSE
◉ Contributions to a Roth IRA can be deducted for income tax
purposes. Answer: FALSE
◉ Individuals may make regular contributions to a traditional IRA
during or after the year in which they reach age 72. Answer: TRUE
◉ Individuals with tax-deferred retirement plans can reduce their
taxable income and _____. Answer: have potentially higher returns
◉ Individuals with a Roth 401(k) or a Roth IRA ____. Answer: can
withdraw their qualified earnings tax-free
,◉ Owners of tax-deferred retirement plans may withdraw funds as
early as age 59½ but must start at age 72, or no later than their
Required Beginning Date (RBD). Answer: TRUE
◉ The two requirements for taking funds out of a Roth IRA without
tax or penalty are being at least age 59½ and meeting the 10-year
holding period. Answer: FALSE
◉ Owners of tax-deferred plans who wait until their Required
Beginning Date (RBD) to withdraw funds might pay higher taxes
that year. Answer: TRUE
◉ When a tax-deferred plan owner dies, the most important factor
in distributing the funds to beneficiaries is the required minimum
distribution (RMD). Answer: FALSE
◉ The heirs named in the will of the tax-deferred plan owner take
precedence over the plan's designated beneficiaries. Answer: FALSE
◉ Owners of tax-deferred retirement plans must start taking
distributions by their required beginning date (RBD), which is April
1 of the year_____. Answer: after the year they turn age 72
,◉ Participants in qualified employer plans (but not IRAs) who
continue to work may delay their required beginning date (RBD)
until April 1 of the year _________. Answer: after they retire
◉ The most effective way to avoid tax or penalties on a withdrawal
of tax-deferred funds is a(n) ________. Answer: direct rollover
◉ Those who want a steady stream of income from a tax-deferred
plan should choose a(n) ______. Answer: annuity
◉ Owners of tax-deferred plans who want to avoid tax penalties on
their required minimum distribution (RMD) may ______. Answer: pay
estimated taxes each quarter
◉ Annuity owners are required to take their payouts in annuitized
amounts over their lifetime. Answer: FALSE
◉ The seller absorbs the investment risk; if the annuity does not
earn the promised rate of return, the seller must make it up. Answer:
Fixed annuity
◉ The annuity owner assumes the investment risk; he or she selects
the investment portfolio in which the annuity premiums are
invested. Answer: Variable annuity
, ◉ The annuity pays a base return, but the interest rate is based on
an outside index. Answer: Equity-indexed annuity
◉ Pays a monthly amount to a single owner for life. When the owner
dies, any remaining funds are forfeited to the insurance company
that issued the annuity. Answer: Straight life
◉ Many retirees rely heavily for income on Social Security, employer
retirement plans, individual savings, and Answer: paid employment,
part- or full-time.
◉ In contrast to a defined benefit plan, a defined contribution plan
means the Answer: employee has the investment risk.
◉ The MAIN difference between a 401(k) retirement plan and a
Roth 401(k) plan is that Answer: a Roth 401(k) plan is funded with
after-tax dollars.
◉ IRS rules for annual contributions to tax-deferred retirement
plans Answer: establish separate annual contribution limits for IRAs
and employer plans.
◉ The most effective way to avoid income tax and penalties on
distributions from a tax-deferred plan is a(n) Answer: direct rollover.
MASTER REVIEW AND PRACTICE MANUAL
◉ In defined contribution plans, employees can choose how their
contributions are invested. Answer: TRUE
◉ In a defined benefit plans, the employee bears the investment risk.
Answer: FALSE
◉ Contributions to a Roth IRA can be deducted for income tax
purposes. Answer: FALSE
◉ Individuals may make regular contributions to a traditional IRA
during or after the year in which they reach age 72. Answer: TRUE
◉ Individuals with tax-deferred retirement plans can reduce their
taxable income and _____. Answer: have potentially higher returns
◉ Individuals with a Roth 401(k) or a Roth IRA ____. Answer: can
withdraw their qualified earnings tax-free
,◉ Owners of tax-deferred retirement plans may withdraw funds as
early as age 59½ but must start at age 72, or no later than their
Required Beginning Date (RBD). Answer: TRUE
◉ The two requirements for taking funds out of a Roth IRA without
tax or penalty are being at least age 59½ and meeting the 10-year
holding period. Answer: FALSE
◉ Owners of tax-deferred plans who wait until their Required
Beginning Date (RBD) to withdraw funds might pay higher taxes
that year. Answer: TRUE
◉ When a tax-deferred plan owner dies, the most important factor
in distributing the funds to beneficiaries is the required minimum
distribution (RMD). Answer: FALSE
◉ The heirs named in the will of the tax-deferred plan owner take
precedence over the plan's designated beneficiaries. Answer: FALSE
◉ Owners of tax-deferred retirement plans must start taking
distributions by their required beginning date (RBD), which is April
1 of the year_____. Answer: after the year they turn age 72
,◉ Participants in qualified employer plans (but not IRAs) who
continue to work may delay their required beginning date (RBD)
until April 1 of the year _________. Answer: after they retire
◉ The most effective way to avoid tax or penalties on a withdrawal
of tax-deferred funds is a(n) ________. Answer: direct rollover
◉ Those who want a steady stream of income from a tax-deferred
plan should choose a(n) ______. Answer: annuity
◉ Owners of tax-deferred plans who want to avoid tax penalties on
their required minimum distribution (RMD) may ______. Answer: pay
estimated taxes each quarter
◉ Annuity owners are required to take their payouts in annuitized
amounts over their lifetime. Answer: FALSE
◉ The seller absorbs the investment risk; if the annuity does not
earn the promised rate of return, the seller must make it up. Answer:
Fixed annuity
◉ The annuity owner assumes the investment risk; he or she selects
the investment portfolio in which the annuity premiums are
invested. Answer: Variable annuity
, ◉ The annuity pays a base return, but the interest rate is based on
an outside index. Answer: Equity-indexed annuity
◉ Pays a monthly amount to a single owner for life. When the owner
dies, any remaining funds are forfeited to the insurance company
that issued the annuity. Answer: Straight life
◉ Many retirees rely heavily for income on Social Security, employer
retirement plans, individual savings, and Answer: paid employment,
part- or full-time.
◉ In contrast to a defined benefit plan, a defined contribution plan
means the Answer: employee has the investment risk.
◉ The MAIN difference between a 401(k) retirement plan and a
Roth 401(k) plan is that Answer: a Roth 401(k) plan is funded with
after-tax dollars.
◉ IRS rules for annual contributions to tax-deferred retirement
plans Answer: establish separate annual contribution limits for IRAs
and employer plans.
◉ The most effective way to avoid income tax and penalties on
distributions from a tax-deferred plan is a(n) Answer: direct rollover.
