CDFA EXAM 2025 (ACTUAL EXAM) COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
During which of the following events should an expert witness explain the general procedures and
assumptions used to generate the financial projections?
a) Voir dire
b) Direct examination
c) Cross examination
d) Redirect examination –
✔✔✔ Correct Answer > b) Direct examination
If Bob contributes $1,000 to his retirement debts plan and then quits or is fired, what happens to his
retirement plan?
a) Bob will forfeit the $1,000 if he is not vested.
b) Bob can take the $1,000.
c) Bob can take the $1,000 if he quit, but not if he was fired.
d) Bob can take the $1,000 as a distribution and pay no tax or penalty.
-✔✔✔ Correct Answer > b) Bob can take the $1,000.
If a qualified retirement plan is being transferred to a non-participant spouse pursuant to a QDRO, payment
of a tax penalty can be avoided if a distribution is taken by the:
a) Participant spouse within six years from the date the divorce becomes final.
b) Non-participant spouse within six years from the date the divorce becomes final.
c) Participant spouse as a one-time opportunity.
d) Non-participant spouse as a one-time opportunity.
- ✔✔✔ Correct Answer > d) Non-participant spouse as a one-time opportunity.
1
, CDFA EXAM 2025 (ACTUAL EXAM) COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
Dave contributes $1,000 to his retirement plan and his employer contributes $1,000 to the plan. If Dave quits
and he is 60% vested, what amount is his?
a) $1,000
b) $1,200
c) $1,600
d) $2,000
- ✔✔✔ Correct Answer > c) $1,600
Alice is a CDFA® professional who lives in the state of Washington. She has divorce clients in both
Washington and Oregon. Which of the following is true about Alice's practice?
a) Alice should be knowledgeable about federal divorce laws and procedures.
b) Alice should be knowledgeable about Washington divorce laws and procedures.
c) Alice should be knowledgeable about Washington and Oregon divorce laws and procedures.
d) Alice should be knowledgeable about Washington and Oregon finance laws and procedures.
- ✔✔✔ Correct Answer > c) Alice should be knowledgeable about Washington and Oregon divorce laws and
procedures.
What is the tax penalty for taking an early distribution from a retirement plan?
a) 0%
b) 10%
c) 20%
d) 25%
- ✔✔✔ Correct Answer > b) 10%
2
, CDFA EXAM 2025 (ACTUAL EXAM) COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
Joe and Barb, both age 52, are divorcing and have agreed to split Joe's 401(k) equally. The value of the 401(k)
is $200,000. Barb had the plan administrator transfer $80,000 to her IRA and distribute $20,000 directly to
Barb. Which of the following will occur as a result of this distribution?
a) Barb will not have to pay ordinary income tax or a tax penalty.
b) Barb will not have to pay ordinary income tax, but she will pay a tax penalty on the $20,000.
c) Barb will pay ordinary income tax on $20,000, but will not pay a tax penalty.
d) Barb will pay ordinary income tax on $100,000, but will only pay a tax penalty on $20,000.
- ✔✔✔ Correct Answer > c) Barb will pay ordinary income tax on $20,000, but will not pay a tax penalty.
Which of the following is NOT a true statement regarding survivor benefits from a pension plan?
a) The QDRO needs to state that the spouses are taking the joint and survivor annuity option.
b) The plan administrator will assume that the spouses are taking the joint and survivor annuity option
unless told otherwise.
c) The non-participant spouse can have his or her portion of the pension set up as a separate account.
d) The QDRO should address the survivor benefits.
- ✔✔✔ Correct Answer > b) The plan administrator will assume that the spouses are taking the joint and
survivor annuity option unless told otherwise.
If the plan administrator transfers the retirement assets directly to the IRA trustee, which of the following will
occur upon the transfer?
a) There will be withholding.
b) There will be no withholding.
c) There will be income tax but no tax penalty.
3
, CDFA EXAM 2025 (ACTUAL EXAM) COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
d) There will be income tax and a tax penalty.
- ✔✔✔ Correct Answer > b) There will be no withholding.
Which of the following accounts will NOT issue statements with the current account value?
a) IRAs
b) Defined benefit plans
c) Defined contribution plans
d) Brokerage accounts
- ✔✔✔ Correct Answer > b) Defined benefit plans
Which of the following methods of dividing pension benefits allows the court to decide how to divide the
pension at some point in the future?
a) Present value
b) Deferred division
c) Reserved jurisdiction
d) Cash-out method
- ✔✔✔ Correct Answer > c) Reserved jurisdiction - the court retains authority to divide the plan at some
point in the future.
Which of the following assets promises to pay the owner a certain amount per month at retirement time?
a) Defined benefit plan
b) Defined contribution plan
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QUESTIONS AND VERIFIED ANSWERS GRADED A+
During which of the following events should an expert witness explain the general procedures and
assumptions used to generate the financial projections?
a) Voir dire
b) Direct examination
c) Cross examination
d) Redirect examination –
✔✔✔ Correct Answer > b) Direct examination
If Bob contributes $1,000 to his retirement debts plan and then quits or is fired, what happens to his
retirement plan?
a) Bob will forfeit the $1,000 if he is not vested.
b) Bob can take the $1,000.
c) Bob can take the $1,000 if he quit, but not if he was fired.
d) Bob can take the $1,000 as a distribution and pay no tax or penalty.
-✔✔✔ Correct Answer > b) Bob can take the $1,000.
If a qualified retirement plan is being transferred to a non-participant spouse pursuant to a QDRO, payment
of a tax penalty can be avoided if a distribution is taken by the:
a) Participant spouse within six years from the date the divorce becomes final.
b) Non-participant spouse within six years from the date the divorce becomes final.
c) Participant spouse as a one-time opportunity.
d) Non-participant spouse as a one-time opportunity.
- ✔✔✔ Correct Answer > d) Non-participant spouse as a one-time opportunity.
1
, CDFA EXAM 2025 (ACTUAL EXAM) COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
Dave contributes $1,000 to his retirement plan and his employer contributes $1,000 to the plan. If Dave quits
and he is 60% vested, what amount is his?
a) $1,000
b) $1,200
c) $1,600
d) $2,000
- ✔✔✔ Correct Answer > c) $1,600
Alice is a CDFA® professional who lives in the state of Washington. She has divorce clients in both
Washington and Oregon. Which of the following is true about Alice's practice?
a) Alice should be knowledgeable about federal divorce laws and procedures.
b) Alice should be knowledgeable about Washington divorce laws and procedures.
c) Alice should be knowledgeable about Washington and Oregon divorce laws and procedures.
d) Alice should be knowledgeable about Washington and Oregon finance laws and procedures.
- ✔✔✔ Correct Answer > c) Alice should be knowledgeable about Washington and Oregon divorce laws and
procedures.
What is the tax penalty for taking an early distribution from a retirement plan?
a) 0%
b) 10%
c) 20%
d) 25%
- ✔✔✔ Correct Answer > b) 10%
2
, CDFA EXAM 2025 (ACTUAL EXAM) COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
Joe and Barb, both age 52, are divorcing and have agreed to split Joe's 401(k) equally. The value of the 401(k)
is $200,000. Barb had the plan administrator transfer $80,000 to her IRA and distribute $20,000 directly to
Barb. Which of the following will occur as a result of this distribution?
a) Barb will not have to pay ordinary income tax or a tax penalty.
b) Barb will not have to pay ordinary income tax, but she will pay a tax penalty on the $20,000.
c) Barb will pay ordinary income tax on $20,000, but will not pay a tax penalty.
d) Barb will pay ordinary income tax on $100,000, but will only pay a tax penalty on $20,000.
- ✔✔✔ Correct Answer > c) Barb will pay ordinary income tax on $20,000, but will not pay a tax penalty.
Which of the following is NOT a true statement regarding survivor benefits from a pension plan?
a) The QDRO needs to state that the spouses are taking the joint and survivor annuity option.
b) The plan administrator will assume that the spouses are taking the joint and survivor annuity option
unless told otherwise.
c) The non-participant spouse can have his or her portion of the pension set up as a separate account.
d) The QDRO should address the survivor benefits.
- ✔✔✔ Correct Answer > b) The plan administrator will assume that the spouses are taking the joint and
survivor annuity option unless told otherwise.
If the plan administrator transfers the retirement assets directly to the IRA trustee, which of the following will
occur upon the transfer?
a) There will be withholding.
b) There will be no withholding.
c) There will be income tax but no tax penalty.
3
, CDFA EXAM 2025 (ACTUAL EXAM) COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
d) There will be income tax and a tax penalty.
- ✔✔✔ Correct Answer > b) There will be no withholding.
Which of the following accounts will NOT issue statements with the current account value?
a) IRAs
b) Defined benefit plans
c) Defined contribution plans
d) Brokerage accounts
- ✔✔✔ Correct Answer > b) Defined benefit plans
Which of the following methods of dividing pension benefits allows the court to decide how to divide the
pension at some point in the future?
a) Present value
b) Deferred division
c) Reserved jurisdiction
d) Cash-out method
- ✔✔✔ Correct Answer > c) Reserved jurisdiction - the court retains authority to divide the plan at some
point in the future.
Which of the following assets promises to pay the owner a certain amount per month at retirement time?
a) Defined benefit plan
b) Defined contribution plan
4
