FPQP Exam Study Set 2026–2027 – Complete
Test Bank and Question Bank with Answers for
Financial Planning Exam Preparation
Introduction
This document contains a comprehensive collection of FPQP
test bank and question bank questions with detailed answers
covering financial planning concepts. Topics include
retirement planning, Social Security, investments, insurance,
taxation, risk management, estate planning, and financial
planning principles for the 2026–2027 examination period.
The material is designed as a complete exam study resource
and provides extensive practice questions aligned with key
FPQP exam topics.
Exam Questions and Answers
108.Components of an Investment Policy Statement--- correct
precise answer --- Goals, time frame, current assets, ability to
take risk, willingness to take risk, liquidity needs, personality
109.SWOT Analysis--- correct precise answer --- strengths,
weaknesses, opportunities, threats analysis for yourself/client
,110.Why individuals don't save: (many reasons)--- correct
precise answer --- procrastination, confusion about where to
start, poor cash management, paying ott debt, saving for a
house, etc
111.Sources of Income Among Retirees--- correct precise
answer --- Social Security, employer retirement plans,
savings/in-vestments, IRAs, annuity income, stock dividends,
rental income, employment, inheritance
112.The main types of retirement plans (3)--- correct precise
answer --- Qualified Plans
-defined benefit plans, cash balance plans, profit sharing
plans, 401k plans
Other Tax Advantaged Plans
-Traditional/Roth IRAs, 403b plans, SIMPLE IRA, SEP plan
Non-qualified Plans
-457 plans
113.Defined Benefit Plans or Pensions--- correct precise
answer --- - Typically only employers contribute
-Funds are put into a general trust fund; no separate accounts
-Benefit is a defined dollar or formula account (% of income
in past years of service)
-Mostly phased out in private sector
-Can have age and years of service restrictions
114.Cash balance Plans--- correct precise answer --- - Defines
benefit that closely resembles a defined contribution plan
-Each year participant receives pay credit & interest credit
-Hypothetical account balance
-Future benefits defined by stated account balance
,115.Profit Sharing Plan--- correct precise answer --- -
Employees participate in the success of the company
-Company contributes to the plan on a "recurring and
substantial basis" - may have a vesting schedule
-Ultimate retirement benefit is unknown Regulated by ERISA
116.401(k) plan--- correct precise answer --- - allows the
employee to defer income pre-tax into a profit sharing plan
-elective contributions: $22,500 in 2023, or $7,500 age 50
catch up in 2023
117.401(k) profit sharing plans--- correct precise answer --- -
employer discretionary contributions
-employee elective deferrals
-employer matching or nonelective contributions
118.Traditional IRAs--- correct precise answer --- Eligibility:
must have earned income, $6,500 + $1000 catch up if age 50
or older (2023) Deadline: April 15th for prior tax year
contribution
Tax deferred growth
May be deductible, partially, or non-deductible
-phase outs: single 73k-83k. Married filing jointly: $116k -
$136k (2023) Spousal IRAs allowed
119.Roth IRAs--- correct precise answer --- Provides tax-free
growth and tax-free withdrawals if account has been opened
at least five years and the individual is at least age 59½
$6,500 + $1,000 catch-up if age 50 or older (2023)
Principal is considered withdrawn first if a premature
distribution is taken, conversions (if any) second, and then
earnings
, Eligibility phaseouts apply
Single $138,000-$153,000; Married filing jointly $218,000-
$228,000 (2023)
Qualified distributions from a Roth IRA are totally income tax-
and penalty-free
120.Rollover IRAs--- correct precise answer --- Purpose: to
transfer assets from one custodian to another custodian
121.2 Methods for Rollover IRAs--- correct precise answer ---
60 day rollover: check goes to the individual, IRS reporting, 1x
allowed per year, 20% mandatory withholding if from
employer plan
Direct Transfer: balance goes directly to another trustee
no IRS reporting, no limit on number allowed per year, no
mandatory 20% withholding
122.403(b) Plan--- correct precise answer --- a tax-deferred
retirement plan for employees of public schools and tax-
exempt organizations
-similar to a 401k
-contribution limits same as 401k
-matching contributions available
-Special 15 year service catch up provision available
123.Section 457 Plan--- correct precise answer --- Available to
employees of state and local governments and nonprofits
$22,500/$7,500 limits (2023)
124.Small Business Plans (2)--- correct precise answer ---
SIMPLE IRA, SEP-IRA
125.SIMPLE Plan--- correct precise answer --- 100 or fewer
employees
Test Bank and Question Bank with Answers for
Financial Planning Exam Preparation
Introduction
This document contains a comprehensive collection of FPQP
test bank and question bank questions with detailed answers
covering financial planning concepts. Topics include
retirement planning, Social Security, investments, insurance,
taxation, risk management, estate planning, and financial
planning principles for the 2026–2027 examination period.
The material is designed as a complete exam study resource
and provides extensive practice questions aligned with key
FPQP exam topics.
Exam Questions and Answers
108.Components of an Investment Policy Statement--- correct
precise answer --- Goals, time frame, current assets, ability to
take risk, willingness to take risk, liquidity needs, personality
109.SWOT Analysis--- correct precise answer --- strengths,
weaknesses, opportunities, threats analysis for yourself/client
,110.Why individuals don't save: (many reasons)--- correct
precise answer --- procrastination, confusion about where to
start, poor cash management, paying ott debt, saving for a
house, etc
111.Sources of Income Among Retirees--- correct precise
answer --- Social Security, employer retirement plans,
savings/in-vestments, IRAs, annuity income, stock dividends,
rental income, employment, inheritance
112.The main types of retirement plans (3)--- correct precise
answer --- Qualified Plans
-defined benefit plans, cash balance plans, profit sharing
plans, 401k plans
Other Tax Advantaged Plans
-Traditional/Roth IRAs, 403b plans, SIMPLE IRA, SEP plan
Non-qualified Plans
-457 plans
113.Defined Benefit Plans or Pensions--- correct precise
answer --- - Typically only employers contribute
-Funds are put into a general trust fund; no separate accounts
-Benefit is a defined dollar or formula account (% of income
in past years of service)
-Mostly phased out in private sector
-Can have age and years of service restrictions
114.Cash balance Plans--- correct precise answer --- - Defines
benefit that closely resembles a defined contribution plan
-Each year participant receives pay credit & interest credit
-Hypothetical account balance
-Future benefits defined by stated account balance
,115.Profit Sharing Plan--- correct precise answer --- -
Employees participate in the success of the company
-Company contributes to the plan on a "recurring and
substantial basis" - may have a vesting schedule
-Ultimate retirement benefit is unknown Regulated by ERISA
116.401(k) plan--- correct precise answer --- - allows the
employee to defer income pre-tax into a profit sharing plan
-elective contributions: $22,500 in 2023, or $7,500 age 50
catch up in 2023
117.401(k) profit sharing plans--- correct precise answer --- -
employer discretionary contributions
-employee elective deferrals
-employer matching or nonelective contributions
118.Traditional IRAs--- correct precise answer --- Eligibility:
must have earned income, $6,500 + $1000 catch up if age 50
or older (2023) Deadline: April 15th for prior tax year
contribution
Tax deferred growth
May be deductible, partially, or non-deductible
-phase outs: single 73k-83k. Married filing jointly: $116k -
$136k (2023) Spousal IRAs allowed
119.Roth IRAs--- correct precise answer --- Provides tax-free
growth and tax-free withdrawals if account has been opened
at least five years and the individual is at least age 59½
$6,500 + $1,000 catch-up if age 50 or older (2023)
Principal is considered withdrawn first if a premature
distribution is taken, conversions (if any) second, and then
earnings
, Eligibility phaseouts apply
Single $138,000-$153,000; Married filing jointly $218,000-
$228,000 (2023)
Qualified distributions from a Roth IRA are totally income tax-
and penalty-free
120.Rollover IRAs--- correct precise answer --- Purpose: to
transfer assets from one custodian to another custodian
121.2 Methods for Rollover IRAs--- correct precise answer ---
60 day rollover: check goes to the individual, IRS reporting, 1x
allowed per year, 20% mandatory withholding if from
employer plan
Direct Transfer: balance goes directly to another trustee
no IRS reporting, no limit on number allowed per year, no
mandatory 20% withholding
122.403(b) Plan--- correct precise answer --- a tax-deferred
retirement plan for employees of public schools and tax-
exempt organizations
-similar to a 401k
-contribution limits same as 401k
-matching contributions available
-Special 15 year service catch up provision available
123.Section 457 Plan--- correct precise answer --- Available to
employees of state and local governments and nonprofits
$22,500/$7,500 limits (2023)
124.Small Business Plans (2)--- correct precise answer ---
SIMPLE IRA, SEP-IRA
125.SIMPLE Plan--- correct precise answer --- 100 or fewer
employees
