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CRPC PRACTICE EXAM AND STUDYGUIDE NEWEST 2025/ 2026
COMPLETE ALL 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH EXPLANATIONS (VERIFIED ANSWERS)
|ALREADY GRADED A+|| NEWEST EXAM!!!
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
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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.
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
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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
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
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$193,000-$203,000 (for 2019) for Norman, who is the nonactive
participant spouse.
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
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.
CRPC PRACTICE EXAM AND STUDYGUIDE NEWEST 2025/ 2026
COMPLETE ALL 400 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH EXPLANATIONS (VERIFIED ANSWERS)
|ALREADY GRADED A+|| NEWEST EXAM!!!
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
,2|Page
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.
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
,3|Page
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
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
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$193,000-$203,000 (for 2019) for Norman, who is the nonactive
participant spouse.
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
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.
