1|Page
CRPC Practice Exam 2025 – Complete Study Guide, Sample
Questions, and Certification Prep
Get ready for your CRPC Practice Exam (Chartered Retirement Planning Counselor℠)
with this complete 2025 study and test prep guide. Review retirement planning strategies, tax
implications, estate planning, and client management. Includes realistic practice exam
questions, expert explanations, and study tips to help you pass your CRPC certification exam
with confidence.
CRPC practice exam 2025,
Chartered Retirement Planning Counselor practice test,
CRPC study guide 2025,
CRPC exam questions and answers,
Harry, who is 34 years old, contributed $2,000 to a Roth IRA six years ago. By this year, the
investments in his account had grown to $3,785. Finding himself in a financial bind, Harry is now
compelled to withdraw $2,000 from this Roth IRA. What is the tax and penalty status of this
withdrawal? - ANSWER-Strategic
Norman and Brenda Walker are married taxpayers filing jointly. They are both 44 years old.
Norman earned $132 this year, and Brenda earned $100,000. Brenda is an active participant in
the qualified plan offered by her employer, and she contributed $1,500 to her IRA for this tax
year. How much, if any, can be contributed to a spousal IRA and deducted for Norman for 2019?
- ANSWER-$6000
The maximum deductible contribution to a spousal IRA for Norman is $6,000. The deductible
amount phases out at AGI of $193,000-$203,000 (for 2019) for Norman, who is the nonactive
participant spouse.
,2|Page
James and Doris Stewart, both age 40, will contribute a total of $12,000 to their IRAs for this tax
year. They both work outside the home, and they file a joint tax return. James is a teacher at the
local high school and contributes to a TSA. Doris's employer has no retirement plan. Their
adjusted gross earnings for this year will be $111,000. What amount, if any, can they deduct for
their IRA contributions? - ANSWER-$9600
The spouse, at their Social Security full retirement age, will receive 50% of the worker's PIA
unless the spouse's Social Security benefit is higher based on his or her own earnings. (Note:
The FRA began increasing for those workers who reached age 62 in the year 2000.) Answer a. is
wrong because at full retirement age the worker will receive 100% of PIA. Answer b. is incorrect
because the spousal benefit would be less than 50%. The 50% of PIA is reduced for each month
the spouse is under full retirement age when benefits begin. Answer d. is wrong because the
spouse would receive the higher of 100% of their own PIA or 50% of the spouse's PIA.
Susan has reached full retirement age (FRA). She is trying to decide between starting Social
Security benefits of $500 per month now, or delaying receipt for three years and using her
savings to provide current income. By delaying three years her benefit would increase to $620
per month. Ignoring the time value of money and cost-of-living adjustments, use the break-even
calculation to determine how much longer Susan will need to live in order for delaying to "pay
off." - ANSWER-Only if she is going to live past 12.5 years
By delaying three years, Susan is forfeiting $500 x 36 payments or $18,000 of benefits. She
would then gain $120 per month going forward: $18,000/$120 = 150 months, or 12.5 years. If
she thinks she is going to live beyond 12.5 years, it would pay to delay benefits by three years.
Sam, age 62, begins receiving his Social Security income. His PIA is $1,500 per month. Because
he has filed at age 62, his payment will be reduced by 25% to $1,125. His wife Linda, age 67,
would like to begin spousal benefits. Her monthly income would be - ANSWER-$750
Because Linda has attained FRA, she would be eligible for 50% of Sam's full PIA, or $750.00.
,3|Page
If a security has an average return of 14.2% and a standard deviation of 8.4, calculate the
returns of the first level of Standard Deviation - ANSWER-5.8 and 22.6 68% of the time
Your client has established a balanced portfolio with various amounts allocated to different
asset classes, and periodically she rebalances the portfolio to keep the same approximate
percentages in the different asset classes. Her approach is - ANSWER-Strategic
Doris is entitled to deduct the full $6,000 spousal IRA amount and James is in the phaseout
range for active spouses: $123,000 - $111,000 = $12,000; $12,000 ÷ $20,000 phaseout range =
0.6; 0.6 × $6,000 = $3,600; $3,600 + $6,000 = $9,600. Notice that the Stewarts are in the
phaseout range for active participants. Also, one of the spouses is not an active participant in a
qualified retirement plan. Thus, the nonparticipant spouse can do the full amount and the
active participant can do something. Thus, $6,000 is too small. Also, $12,000 is too large
because at least some of the active participant's ability is phased out.
Charlie Clemons contributed $2,000 to Roth IRA 1 last year, when he was age 24, and $2,000 to
Roth IRA 2 this year. Two years from now, Roth IRA 1 will have a balance of $2,650, and Roth IRA
2 will have a balance of $2,590, and Charlie will close Roth IRA 1, receiving the balance of
$2,650. Which one of the following statements best describes his tax and penalty status for that
year? - ANSWER-He will pay neither taxes nor a penalty
The distribution is not qualified because Charlie is under age 59½, not disabled, not dead, or not
making a first time home purchase and he is withdrawing the money before the waiting period
of five tax years. Withdrawals within five years are not prohibited, but taxation will generally
occur and penalties may apply in some cases. None of this withdrawal, however, is included in
Charlie's taxable income because the $2,650 sum is less than the aggregate total of his
contributions ($4,000). No penalty applies since the withdrawal is not taxable.
The "required beginning date" (RBD) for IRA distributions is - ANSWER-April 1 of the year
following the year in which age 70.5 was attained
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Over a period of 10 years, Mark Edmunds contributed a total of $20,000 to a nondeductible IRA.
The current value of Mark's IRA is $40,000, and Mark, who is now age 45, has decided to use all
of his IRA assets for the down payment on a second home. Assuming Mark's marginal tax
bracket is 35%, how much does he owe in taxes? - ANSWER-$9000
Mark's effective tax rate is 45%; i.e., 35% plus the 10% early withdrawal penalty. 45% × $20,000
tax-deferred earnings = $9,000. The $20,000 basis in the IRA is not subject to income tax or the
early withdrawal penalty.
Richard Harper, age 45, and his wife Betty, age 44, plan to contribute a total of $12,000 to their
IRAs for this tax year. They both work outside the home, and they file a joint income tax return.
Richard is a teacher at the local high school and participates in a 403(b) plan. Betty's employer
does not provide a retirement plan. They expect that their adjusted gross income for the year
will be $125,000.What amount, if any, can they deduct for their IRA contributions? - ANSWER-
$6000
An individual is not denied a deduction for his or her IRA contribution simply because of the
other spouse's active participation, unless the couple's combined AGI exceeds $193,000
(phasing out to $203,000 in 2019). Based on their AGI, Betty will be able to deduct a
contribution of up to $6,000 to an IRA. Richard cannot deduct any of his IRA contribution
because their AGI is beyond the 2019 phaseout range for active participants of $103,000-
$123,000 for 2019. Because their combined AGI is too high for Richard to make a deductible IRA
contribution, he should consider contributing to a Roth IRA.
Harry, a single professor who is age 36, started his Roth IRA three years ago, contributing
$5,000. He has since made a contribution of $5,500 each year and converted a traditional IRA of
$17,000 to the Roth IRA last year. His total contributions are $16,000 plus the $17,000
conversion, and the account is now worth $36,497. Harry would like to make a complete
withdrawal so that he can buy a new car. What would you tell him his penalty is? - ANSWER-If a
withdrawal of converted IRA funds is made from the Roth account subsequent to the conversion
but before five years has elapsed, the withdrawal may be subject to a 10% early withdrawal
penalty
CRPC Practice Exam 2025 – Complete Study Guide, Sample
Questions, and Certification Prep
Get ready for your CRPC Practice Exam (Chartered Retirement Planning Counselor℠)
with this complete 2025 study and test prep guide. Review retirement planning strategies, tax
implications, estate planning, and client management. Includes realistic practice exam
questions, expert explanations, and study tips to help you pass your CRPC certification exam
with confidence.
CRPC practice exam 2025,
Chartered Retirement Planning Counselor practice test,
CRPC study guide 2025,
CRPC exam questions and answers,
Harry, who is 34 years old, contributed $2,000 to a Roth IRA six years ago. By this year, the
investments in his account had grown to $3,785. Finding himself in a financial bind, Harry is now
compelled to withdraw $2,000 from this Roth IRA. What is the tax and penalty status of this
withdrawal? - ANSWER-Strategic
Norman and Brenda Walker are married taxpayers filing jointly. They are both 44 years old.
Norman earned $132 this year, and Brenda earned $100,000. Brenda is an active participant in
the qualified plan offered by her employer, and she contributed $1,500 to her IRA for this tax
year. How much, if any, can be contributed to a spousal IRA and deducted for Norman for 2019?
- ANSWER-$6000
The maximum deductible contribution to a spousal IRA for Norman is $6,000. The deductible
amount phases out at AGI of $193,000-$203,000 (for 2019) for Norman, who is the nonactive
participant spouse.
,2|Page
James and Doris Stewart, both age 40, will contribute a total of $12,000 to their IRAs for this tax
year. They both work outside the home, and they file a joint tax return. James is a teacher at the
local high school and contributes to a TSA. Doris's employer has no retirement plan. Their
adjusted gross earnings for this year will be $111,000. What amount, if any, can they deduct for
their IRA contributions? - ANSWER-$9600
The spouse, at their Social Security full retirement age, will receive 50% of the worker's PIA
unless the spouse's Social Security benefit is higher based on his or her own earnings. (Note:
The FRA began increasing for those workers who reached age 62 in the year 2000.) Answer a. is
wrong because at full retirement age the worker will receive 100% of PIA. Answer b. is incorrect
because the spousal benefit would be less than 50%. The 50% of PIA is reduced for each month
the spouse is under full retirement age when benefits begin. Answer d. is wrong because the
spouse would receive the higher of 100% of their own PIA or 50% of the spouse's PIA.
Susan has reached full retirement age (FRA). She is trying to decide between starting Social
Security benefits of $500 per month now, or delaying receipt for three years and using her
savings to provide current income. By delaying three years her benefit would increase to $620
per month. Ignoring the time value of money and cost-of-living adjustments, use the break-even
calculation to determine how much longer Susan will need to live in order for delaying to "pay
off." - ANSWER-Only if she is going to live past 12.5 years
By delaying three years, Susan is forfeiting $500 x 36 payments or $18,000 of benefits. She
would then gain $120 per month going forward: $18,000/$120 = 150 months, or 12.5 years. If
she thinks she is going to live beyond 12.5 years, it would pay to delay benefits by three years.
Sam, age 62, begins receiving his Social Security income. His PIA is $1,500 per month. Because
he has filed at age 62, his payment will be reduced by 25% to $1,125. His wife Linda, age 67,
would like to begin spousal benefits. Her monthly income would be - ANSWER-$750
Because Linda has attained FRA, she would be eligible for 50% of Sam's full PIA, or $750.00.
,3|Page
If a security has an average return of 14.2% and a standard deviation of 8.4, calculate the
returns of the first level of Standard Deviation - ANSWER-5.8 and 22.6 68% of the time
Your client has established a balanced portfolio with various amounts allocated to different
asset classes, and periodically she rebalances the portfolio to keep the same approximate
percentages in the different asset classes. Her approach is - ANSWER-Strategic
Doris is entitled to deduct the full $6,000 spousal IRA amount and James is in the phaseout
range for active spouses: $123,000 - $111,000 = $12,000; $12,000 ÷ $20,000 phaseout range =
0.6; 0.6 × $6,000 = $3,600; $3,600 + $6,000 = $9,600. Notice that the Stewarts are in the
phaseout range for active participants. Also, one of the spouses is not an active participant in a
qualified retirement plan. Thus, the nonparticipant spouse can do the full amount and the
active participant can do something. Thus, $6,000 is too small. Also, $12,000 is too large
because at least some of the active participant's ability is phased out.
Charlie Clemons contributed $2,000 to Roth IRA 1 last year, when he was age 24, and $2,000 to
Roth IRA 2 this year. Two years from now, Roth IRA 1 will have a balance of $2,650, and Roth IRA
2 will have a balance of $2,590, and Charlie will close Roth IRA 1, receiving the balance of
$2,650. Which one of the following statements best describes his tax and penalty status for that
year? - ANSWER-He will pay neither taxes nor a penalty
The distribution is not qualified because Charlie is under age 59½, not disabled, not dead, or not
making a first time home purchase and he is withdrawing the money before the waiting period
of five tax years. Withdrawals within five years are not prohibited, but taxation will generally
occur and penalties may apply in some cases. None of this withdrawal, however, is included in
Charlie's taxable income because the $2,650 sum is less than the aggregate total of his
contributions ($4,000). No penalty applies since the withdrawal is not taxable.
The "required beginning date" (RBD) for IRA distributions is - ANSWER-April 1 of the year
following the year in which age 70.5 was attained
, 4|Page
Over a period of 10 years, Mark Edmunds contributed a total of $20,000 to a nondeductible IRA.
The current value of Mark's IRA is $40,000, and Mark, who is now age 45, has decided to use all
of his IRA assets for the down payment on a second home. Assuming Mark's marginal tax
bracket is 35%, how much does he owe in taxes? - ANSWER-$9000
Mark's effective tax rate is 45%; i.e., 35% plus the 10% early withdrawal penalty. 45% × $20,000
tax-deferred earnings = $9,000. The $20,000 basis in the IRA is not subject to income tax or the
early withdrawal penalty.
Richard Harper, age 45, and his wife Betty, age 44, plan to contribute a total of $12,000 to their
IRAs for this tax year. They both work outside the home, and they file a joint income tax return.
Richard is a teacher at the local high school and participates in a 403(b) plan. Betty's employer
does not provide a retirement plan. They expect that their adjusted gross income for the year
will be $125,000.What amount, if any, can they deduct for their IRA contributions? - ANSWER-
$6000
An individual is not denied a deduction for his or her IRA contribution simply because of the
other spouse's active participation, unless the couple's combined AGI exceeds $193,000
(phasing out to $203,000 in 2019). Based on their AGI, Betty will be able to deduct a
contribution of up to $6,000 to an IRA. Richard cannot deduct any of his IRA contribution
because their AGI is beyond the 2019 phaseout range for active participants of $103,000-
$123,000 for 2019. Because their combined AGI is too high for Richard to make a deductible IRA
contribution, he should consider contributing to a Roth IRA.
Harry, a single professor who is age 36, started his Roth IRA three years ago, contributing
$5,000. He has since made a contribution of $5,500 each year and converted a traditional IRA of
$17,000 to the Roth IRA last year. His total contributions are $16,000 plus the $17,000
conversion, and the account is now worth $36,497. Harry would like to make a complete
withdrawal so that he can buy a new car. What would you tell him his penalty is? - ANSWER-If a
withdrawal of converted IRA funds is made from the Roth account subsequent to the conversion
but before five years has elapsed, the withdrawal may be subject to a 10% early withdrawal
penalty
