CRPC EXAM || CRPC PRACTICE EXAM ALL 234
QUESTIONS AND 100% CORRET ANSWERS|| LATEST
AND COMPLETE VERSION ALREADY GRADED A+||
ASSURED PASS!!!!
An income tax penalty-free distribution cannot be made from a TSA until the
employee does which of the following? - ✔✔✔ ANSWER: separates from
service after attaining age 55, becomes disabled or dies
A springing durable power of attorney - ✔✔✔ ANSWER: gives the attorney-in-
fact authority only when the principal becomes incompetent.
The very purpose of any durable power of attorney is - ✔✔✔ ANSWER: to give
the attorney-in-fact authority to act after the principal becomes incapacitated.
However, such authority does not survive the principal's death. Such authority is
created in an independent document (not part of a living will), and is effective
immediately in this type of power of attorney.
A springing durable power of attorney becomes - ✔✔✔ ANSWER: effective
when the principal becomes incompetent or incapacitated.
A Medicare Part A patient must pay - ✔✔✔ ANSWER: all costs for a hospital
stay beyond 150 days.
Which one of the following U.S. citizens is currently eligible for Medicare
coverage at no cost? - ✔✔✔ ANSWER: a self-employed truck driver, age 66. The
truck driver is in a covered occupation (covered by Social Security) and is over age
65. Thus, he or she would receive benefits if fully insured.
basic provisions of Medicare Part B? - ✔✔✔ ANSWER: Coverage includes
benefits for physicians' services. Individuals who are eligible for Part A are
automatically eligible for Part B. Participants pay a monthly premium.
Medicare Part B includes coverage - ✔✔✔ ANSWER: for physicians' services;
Part A covers - ✔✔✔ ANSWER: hospital charges. Part A is provided to eligible
individuals at no charge, but participants must pay a premium for Part B.
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Individuals who are eligible for Part A are automatically eligible for Part B, and
receive it if they pay the related premium.
Which of the following generally are considered potential sources for the funds to
cover the cost of long-term custodial care? - ✔✔✔ ANSWER: Medicaid,
Medicare, group long-term care insurance offered through employers
Medicaid and long-term care (ltc) insurance provide - ✔✔✔ ANSWER:
recipients with benefits such as nursing home care.
Medicare provides - ✔✔✔ ANSWER: only 20 days of skilled nursing care at full
cost and 80 days thereafter with a substantial copay, in only a limited number of
situations. It is designed only to provide temporary care while patients improve
enough to go home, but it does provide some level of LTC coverage.
Which one of the following is a potential problem with a golden parachute? -
✔✔✔ ANSWER: Any excess payment would be nondeductible by the payor and
subject to an excise tax by the employee.
If compensation falls into the golden parachute category, - ✔✔✔ ANSWER: the
employer will lose the deduction on any excess parachute payments and the
employee will be charged a nondeductible 20% excise tax on any excess parachute
payments.
Which one of the following types of distributions are eligible for rollover treatment
- ✔✔✔ ANSWER: A lump-sum payment from a profit sharing plan payable upon
separation from service is eligible for rollover treatment.
A lump-sum payment from a profit sharing plan payable upon separation from
service is - ✔✔✔ ANSWER: eligible for rollover treatment.
The following distributions are not eligible for rollover treatment: - ✔✔✔
ANSWER: 1. Distributions that are part of a series of substantially equal periodic
payments are not eligible for rollover treatment.
2. Distributions that are made to comply with the minimum distribution
requirements are not eligible for rollover treatment.
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3. The nontaxable portion of any IRA distribution is not eligible for rollover
treatment.
The spouse may waive the qualified joint and survivor annuity (QJSA) option via -
✔✔✔ ANSWER: via written consent, which includes acknowledging the effect
of the waiver and the naming of another beneficiary.
Which of the following are correct statements about survivor benefits from a
qualified retirement plan? - ✔✔✔ ANSWER: The qualified joint and survivor
annuity (QJSA) may be waived if the spouse gives written consent to the effect of
the election and the naming of another beneficiary. Defined benefit, money
purchase, and target benefit plans must provide a QJSA. A pension plan is not
required to provide a survivor annuity if the plan participant and spouse have been
married for less than one year. The QJSA payable to the spouse must be at least
50%, but not more than 100%, of the annuity amount payable during the joint lives
and actuarially equivalent to a single life annuity over the life of the participant.
If the participant and spouse have been married for less than one year, the QJSA
plan - ✔✔✔ ANSWER: does not have to provide a survivor annuity.
The QJSA must be - ✔✔✔ ANSWER: actuarially equivalent to a single life
annuity over the life of the participant and at least 50%, but not more than 100%,
of the annuity payable during the joint lives of the participant and spouse.
Profit sharing plans that accept direct transfers from pension plans are subject -
✔✔✔ ANSWER: to the QJSA requirements.
Which one of the following is not a characteristic of a rollover? - ✔✔✔
ANSWER: Amounts rolled over from a qualified plan to an IRA and
subsequently distributed to the participant will be taxed according to the rules that
apply to the original qualified plan.
Amounts distributed from an IRA are t - ✔✔✔ ANSWER: axed according to the
rules that apply to IRAs, regardless of the type of plan from which the funds may
have been rolled over.
The following are exempt from the 10% penalty on qualified plan distributions
made before age 59½? - ✔✔✔ ANSWER: distributions made to a beneficiary
QUESTIONS AND 100% CORRET ANSWERS|| LATEST
AND COMPLETE VERSION ALREADY GRADED A+||
ASSURED PASS!!!!
An income tax penalty-free distribution cannot be made from a TSA until the
employee does which of the following? - ✔✔✔ ANSWER: separates from
service after attaining age 55, becomes disabled or dies
A springing durable power of attorney - ✔✔✔ ANSWER: gives the attorney-in-
fact authority only when the principal becomes incompetent.
The very purpose of any durable power of attorney is - ✔✔✔ ANSWER: to give
the attorney-in-fact authority to act after the principal becomes incapacitated.
However, such authority does not survive the principal's death. Such authority is
created in an independent document (not part of a living will), and is effective
immediately in this type of power of attorney.
A springing durable power of attorney becomes - ✔✔✔ ANSWER: effective
when the principal becomes incompetent or incapacitated.
A Medicare Part A patient must pay - ✔✔✔ ANSWER: all costs for a hospital
stay beyond 150 days.
Which one of the following U.S. citizens is currently eligible for Medicare
coverage at no cost? - ✔✔✔ ANSWER: a self-employed truck driver, age 66. The
truck driver is in a covered occupation (covered by Social Security) and is over age
65. Thus, he or she would receive benefits if fully insured.
basic provisions of Medicare Part B? - ✔✔✔ ANSWER: Coverage includes
benefits for physicians' services. Individuals who are eligible for Part A are
automatically eligible for Part B. Participants pay a monthly premium.
Medicare Part B includes coverage - ✔✔✔ ANSWER: for physicians' services;
Part A covers - ✔✔✔ ANSWER: hospital charges. Part A is provided to eligible
individuals at no charge, but participants must pay a premium for Part B.
,2|P a g e
Individuals who are eligible for Part A are automatically eligible for Part B, and
receive it if they pay the related premium.
Which of the following generally are considered potential sources for the funds to
cover the cost of long-term custodial care? - ✔✔✔ ANSWER: Medicaid,
Medicare, group long-term care insurance offered through employers
Medicaid and long-term care (ltc) insurance provide - ✔✔✔ ANSWER:
recipients with benefits such as nursing home care.
Medicare provides - ✔✔✔ ANSWER: only 20 days of skilled nursing care at full
cost and 80 days thereafter with a substantial copay, in only a limited number of
situations. It is designed only to provide temporary care while patients improve
enough to go home, but it does provide some level of LTC coverage.
Which one of the following is a potential problem with a golden parachute? -
✔✔✔ ANSWER: Any excess payment would be nondeductible by the payor and
subject to an excise tax by the employee.
If compensation falls into the golden parachute category, - ✔✔✔ ANSWER: the
employer will lose the deduction on any excess parachute payments and the
employee will be charged a nondeductible 20% excise tax on any excess parachute
payments.
Which one of the following types of distributions are eligible for rollover treatment
- ✔✔✔ ANSWER: A lump-sum payment from a profit sharing plan payable upon
separation from service is eligible for rollover treatment.
A lump-sum payment from a profit sharing plan payable upon separation from
service is - ✔✔✔ ANSWER: eligible for rollover treatment.
The following distributions are not eligible for rollover treatment: - ✔✔✔
ANSWER: 1. Distributions that are part of a series of substantially equal periodic
payments are not eligible for rollover treatment.
2. Distributions that are made to comply with the minimum distribution
requirements are not eligible for rollover treatment.
, 3|P a g e
3. The nontaxable portion of any IRA distribution is not eligible for rollover
treatment.
The spouse may waive the qualified joint and survivor annuity (QJSA) option via -
✔✔✔ ANSWER: via written consent, which includes acknowledging the effect
of the waiver and the naming of another beneficiary.
Which of the following are correct statements about survivor benefits from a
qualified retirement plan? - ✔✔✔ ANSWER: The qualified joint and survivor
annuity (QJSA) may be waived if the spouse gives written consent to the effect of
the election and the naming of another beneficiary. Defined benefit, money
purchase, and target benefit plans must provide a QJSA. A pension plan is not
required to provide a survivor annuity if the plan participant and spouse have been
married for less than one year. The QJSA payable to the spouse must be at least
50%, but not more than 100%, of the annuity amount payable during the joint lives
and actuarially equivalent to a single life annuity over the life of the participant.
If the participant and spouse have been married for less than one year, the QJSA
plan - ✔✔✔ ANSWER: does not have to provide a survivor annuity.
The QJSA must be - ✔✔✔ ANSWER: actuarially equivalent to a single life
annuity over the life of the participant and at least 50%, but not more than 100%,
of the annuity payable during the joint lives of the participant and spouse.
Profit sharing plans that accept direct transfers from pension plans are subject -
✔✔✔ ANSWER: to the QJSA requirements.
Which one of the following is not a characteristic of a rollover? - ✔✔✔
ANSWER: Amounts rolled over from a qualified plan to an IRA and
subsequently distributed to the participant will be taxed according to the rules that
apply to the original qualified plan.
Amounts distributed from an IRA are t - ✔✔✔ ANSWER: axed according to the
rules that apply to IRAs, regardless of the type of plan from which the funds may
have been rolled over.
The following are exempt from the 10% penalty on qualified plan distributions
made before age 59½? - ✔✔✔ ANSWER: distributions made to a beneficiary
