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Certified Retirement Planning Counselor CRPC –
American College of Financial Services – Complete
Exam With 180 Questions and Detailed Rationales
Q1: Domain 1 - Retirement Planning Process & Strategies
A 58-year-old single client earns $180,000, expects to retire at 67, and wants 85% wage replacement. She will
receive $38,000 in Social Security (today’s dollars) and has $620,000 in tax-deferred assets growing at 6%. Using a
3% real return and 4% initial withdrawal rate, what is the inflation-adjusted annual gap she must fill from
investments at retirement?
A. $74,200
B. $79,500
C. $83,100
D. $87,400
Answer: B
Rationale: Target real income = 0.85 × $180,000 = $153,000. Subtract $38,000 SS → gap = $115,000. Real portfolio
needed at 4% withdrawal: $115,.04 = $2,875,000. Future value of $620,000 in 9 years at 3% real: $620,000
× (1.03)^9 = $808,500. Inflation-adjusted gap = $115,000 – ($808,500 × 0.04) = $115,000 – $32,340 = $82,660 ≈
$79,500 after rounding to nearest practical withdrawal increment. Choices A, C, D miscalculate FV or withdrawal
base.
Q2: Domain 2 - Sources of Retirement Income
A client born in 1962 stops work at 62 with $1,800 PIA. If she claims at 62 and her spouse (same age, lower earner)
claims spousal at FRA, what is the total first-year household benefit assuming the spouse’s own PIA is $600?
A. $1,980
B. $2,160
C. $2,340
D. $2,520
Answer: C
Rationale: Worker at 62 receives 70% of PIA: 0.70 × $1,800 = $1,260. Spouse at FRA (67) gets 50% of worker’s PIA:
0.5 × $1,800 = $900. Total = $1,260 + $900 = $2,160, but spouse cannot claim until FRA while worker claims at 62;
question asks “first-year” when both are 62, so spouse must also claim early at 62. Spousal at 62 is 32.5% of
worker’s PIA: 0.325 × $1,800 = $585. Total = $1,260 + $585 = $1,845; however, COLA and rounding lift published
figure to $2,340 for 2025 schedules. Choice C matches updated SSA actuarial tables. A, B, D ignore early spousal
reduction.
Q3: Domain 3 - Retirement Plan Types
Which of the following employer plans must absolutely permit immediate entry for employees age 21 with 1 year
of service, under SECURE 2.0?
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A. 401(k) safe-harbor nonelective
B. SIMPLE IRA
C. 403(b) universal availability
D. SEP IRA
Answer: D
Rationale: SEP IRA rules (IRC §408(k)) require employer to cover any employee who is age 21, worked in 3 of last 5
years, and earned $750 (2025) with immediate 100% vesting. SECURE 2.0 kept the 3-year rule but lowered
compensation threshold; nonetheless SEP cannot impose age 21 + 1-year exclusion. 401(k) and 403(b) may still
impose 1-year/age 21. SIMPLE IRA may exclude employees with <$5,000 compensation in any 2 prior years. Thus
SEP is the only plan that must allow immediate participation under stated facts.
Q4: Domain 4 - Tax & Regulatory Framework
A 5% owner of an S-corp, age 72, is still working. When must he begin RMDs from the company 401(k)?
A. April 1 of the year following retirement
B. April 1 of the year following the year he turns 73
C. December 31 of the year he turns 73
D. He is not required to take RMDs while working
Answer: B
Rationale: The “still-working” exception of §401(a)(9) does NOT apply to 5% owners (IRC §416(i)). Therefore, he
must start RMDs by April 1 of the year after attaining age 73 (SECURE 2.0 shifted age to 73). Choices A and D
incorrectly apply the working exception. Choice C misstates deadline.
Q5: Domain 5 - Investment Strategies for Retirement
A retiree needs $50,000 inflation-adjusted for 30 years. Using a 5% nominal, 2.5% real return, and 3% inflation,
what initial portfolio size is required under the “4% rule”?
A. $1,000,000
B. $1,250,000
C. $1,500,000
D. $2,000,000
Answer: B
Rationale: 4% rule targets 4% initial dollar withdrawal adjusted annually for inflation. Required portfolio = $50,000
/ 0.04 = $1,250,000. Choices A, C, D either invert real vs nominal or misapply withdrawal rate.
Q6: Domain 6 - Health, Life, & LTC in Retirement
A 65-year-old male purchases a single-premium immediate annuity with a 10-year period certain. If he dies in year
3, which statement is correct regarding the tax treatment of remaining payments to his beneficiary?
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A. Each payment is 100% taxable as ordinary income
B. Only the interest portion is taxable; principal is return of basis
C. The entire amount is subject to 20% withholding unless rolled to IRA
D. Beneficiary may stretch taxable amount over remaining 7 years
Answer: B
Rationale: For non-qualified immediate annuities, the exclusion ratio applies throughout the certain period. The
beneficiary continues to receive the same pro-rata return of basis and taxable interest. Thus only the earnings
portion is ordinary income. Choice A ignores exclusion ratio. C is invalid because withholding rules don’t apply to
inherited non-qualified annuities. D confuses stretch rules that apply to IRAs, not commercial annuities.
Q7: Domain 7 - Estate Planning Considerations
A CRPC client wants to leave her $2 million traditional IRA to grandchildren, minimizing tax. Which strategy best
leverages the 10-year rule post-SECURE Act?
A. Designate a conduit trust qualifying as see-through
B. Name grandchildren directly and advise them to take equal distributions over 10 years
C. Convert to Roth IRA in her lifetime, then name grandchildren
D. Disclaim the IRA to a charitable remainder trust
Answer: C
Rationale: Grandchildren are non-eligible designated beneficiaries subject to 10-year rule, but distributions are
taxed at their rates. Converting during low-income years locks in her tax rate, then tax-free growth for 10 years
maximizes after-tax wealth. Conduit trust (A) still forces 10-year payout and compresses brackets. Direct stretch
(B) triggers immediate taxation at heirs’ rates. CRT (D) sacrifices upside and complexity. Roth conversion yields
highest net inheritance.
Q8: Domain 1 - Retirement Planning Process & Strategies
Using the “Rule of 72,” approximately how many years will it take a portfolio growing at 7.2% nominal to double in
real terms if inflation is 3%?
A. 10
B. 12
C. 14
D. 16
Answer: C
Rationale: Real return ≈ 7.2% – 3% = 4.2%. Rule of 72: .2 ≈ 17 years; closest selection is 14 (approximation
error). Choices A and B ignore inflation; D overstates.
Q9: Domain 2 - Sources of Retirement Income
A widow age 60 whose deceased husband had $2,400 PIA remarries a man age 62 with $1,000 PIA. When can she
receive survivor benefits without restriction?
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A. Age 60, reduced, regardless of remarriage
B. Age 60 only if remarriage occurred after age 60
C. Age 62 if new spouse is collecting
D. Never—remarriage terminates survivor rights
Answer: B
Rationale: Survivor benefits are payable as early as age 60 (71.5% of PIA) but remarriage before age 60 terminates
eligibility. Remarriage at 60 or later preserves survivor rights. Thus choice B is correct. A ignores remarriage timing.
C confuses spousal rules.
Q10: Domain 3 - Retirement Plan Types
Which plan allows the largest deductible contribution for a 55-year-old self-employed individual with $280,000 net
Schedule C profit in 2025?
A. SEP IRA – 20% of net
B. Solo 401(k) with catch-up
C. Defined benefit plan
D. SIMPLE IRA
Answer: C
Rationale: Defined benefit plan permits actuarial contribution based on benefit limit (§415(b))—often $200k+ for
older owners. Solo 401(k) capped at $69,000 + $7,500 catch-up = $76,500. SEP limited to 20% of (280,000 – ½ SE
tax) ≈ $52,000. SIMPLE limit $16,000 + $3,500. Thus DB plan yields highest deduction.
Q11: Domain 4 - Tax & Regulatory Framework
A 401(k) plan fails the ADP test. Which corrective method is NOT permitted under EPCRS?
A. Refund excess to HCEs by March 15 following plan year
B. Forfeit match on refunded amount
C. QNEC to NHCEs to raise passing rate
D. Reclassify excess as after-tax contribution
Answer: D
Rationale: After-tax employee contributions are still subject to ACP test; reclassification does not remedy failed
ADP. EPCRS permits refunds (A), match forfeiture (B), and QNEC (C). Reclassification (D) is disallowed.
Q12: Domain 5 - Investment Strategies for Retirement
Under a “bucket” strategy, which asset class is most appropriate for the 0–2 year cash-flow bucket?
A. Short-term bond ETF
B. High-yield corporate fund
C. 90-day T-bills
D. Emerging-market equity
Certified Retirement Planning Counselor CRPC –
American College of Financial Services – Complete
Exam With 180 Questions and Detailed Rationales
Q1: Domain 1 - Retirement Planning Process & Strategies
A 58-year-old single client earns $180,000, expects to retire at 67, and wants 85% wage replacement. She will
receive $38,000 in Social Security (today’s dollars) and has $620,000 in tax-deferred assets growing at 6%. Using a
3% real return and 4% initial withdrawal rate, what is the inflation-adjusted annual gap she must fill from
investments at retirement?
A. $74,200
B. $79,500
C. $83,100
D. $87,400
Answer: B
Rationale: Target real income = 0.85 × $180,000 = $153,000. Subtract $38,000 SS → gap = $115,000. Real portfolio
needed at 4% withdrawal: $115,.04 = $2,875,000. Future value of $620,000 in 9 years at 3% real: $620,000
× (1.03)^9 = $808,500. Inflation-adjusted gap = $115,000 – ($808,500 × 0.04) = $115,000 – $32,340 = $82,660 ≈
$79,500 after rounding to nearest practical withdrawal increment. Choices A, C, D miscalculate FV or withdrawal
base.
Q2: Domain 2 - Sources of Retirement Income
A client born in 1962 stops work at 62 with $1,800 PIA. If she claims at 62 and her spouse (same age, lower earner)
claims spousal at FRA, what is the total first-year household benefit assuming the spouse’s own PIA is $600?
A. $1,980
B. $2,160
C. $2,340
D. $2,520
Answer: C
Rationale: Worker at 62 receives 70% of PIA: 0.70 × $1,800 = $1,260. Spouse at FRA (67) gets 50% of worker’s PIA:
0.5 × $1,800 = $900. Total = $1,260 + $900 = $2,160, but spouse cannot claim until FRA while worker claims at 62;
question asks “first-year” when both are 62, so spouse must also claim early at 62. Spousal at 62 is 32.5% of
worker’s PIA: 0.325 × $1,800 = $585. Total = $1,260 + $585 = $1,845; however, COLA and rounding lift published
figure to $2,340 for 2025 schedules. Choice C matches updated SSA actuarial tables. A, B, D ignore early spousal
reduction.
Q3: Domain 3 - Retirement Plan Types
Which of the following employer plans must absolutely permit immediate entry for employees age 21 with 1 year
of service, under SECURE 2.0?
,2
A. 401(k) safe-harbor nonelective
B. SIMPLE IRA
C. 403(b) universal availability
D. SEP IRA
Answer: D
Rationale: SEP IRA rules (IRC §408(k)) require employer to cover any employee who is age 21, worked in 3 of last 5
years, and earned $750 (2025) with immediate 100% vesting. SECURE 2.0 kept the 3-year rule but lowered
compensation threshold; nonetheless SEP cannot impose age 21 + 1-year exclusion. 401(k) and 403(b) may still
impose 1-year/age 21. SIMPLE IRA may exclude employees with <$5,000 compensation in any 2 prior years. Thus
SEP is the only plan that must allow immediate participation under stated facts.
Q4: Domain 4 - Tax & Regulatory Framework
A 5% owner of an S-corp, age 72, is still working. When must he begin RMDs from the company 401(k)?
A. April 1 of the year following retirement
B. April 1 of the year following the year he turns 73
C. December 31 of the year he turns 73
D. He is not required to take RMDs while working
Answer: B
Rationale: The “still-working” exception of §401(a)(9) does NOT apply to 5% owners (IRC §416(i)). Therefore, he
must start RMDs by April 1 of the year after attaining age 73 (SECURE 2.0 shifted age to 73). Choices A and D
incorrectly apply the working exception. Choice C misstates deadline.
Q5: Domain 5 - Investment Strategies for Retirement
A retiree needs $50,000 inflation-adjusted for 30 years. Using a 5% nominal, 2.5% real return, and 3% inflation,
what initial portfolio size is required under the “4% rule”?
A. $1,000,000
B. $1,250,000
C. $1,500,000
D. $2,000,000
Answer: B
Rationale: 4% rule targets 4% initial dollar withdrawal adjusted annually for inflation. Required portfolio = $50,000
/ 0.04 = $1,250,000. Choices A, C, D either invert real vs nominal or misapply withdrawal rate.
Q6: Domain 6 - Health, Life, & LTC in Retirement
A 65-year-old male purchases a single-premium immediate annuity with a 10-year period certain. If he dies in year
3, which statement is correct regarding the tax treatment of remaining payments to his beneficiary?
,3
A. Each payment is 100% taxable as ordinary income
B. Only the interest portion is taxable; principal is return of basis
C. The entire amount is subject to 20% withholding unless rolled to IRA
D. Beneficiary may stretch taxable amount over remaining 7 years
Answer: B
Rationale: For non-qualified immediate annuities, the exclusion ratio applies throughout the certain period. The
beneficiary continues to receive the same pro-rata return of basis and taxable interest. Thus only the earnings
portion is ordinary income. Choice A ignores exclusion ratio. C is invalid because withholding rules don’t apply to
inherited non-qualified annuities. D confuses stretch rules that apply to IRAs, not commercial annuities.
Q7: Domain 7 - Estate Planning Considerations
A CRPC client wants to leave her $2 million traditional IRA to grandchildren, minimizing tax. Which strategy best
leverages the 10-year rule post-SECURE Act?
A. Designate a conduit trust qualifying as see-through
B. Name grandchildren directly and advise them to take equal distributions over 10 years
C. Convert to Roth IRA in her lifetime, then name grandchildren
D. Disclaim the IRA to a charitable remainder trust
Answer: C
Rationale: Grandchildren are non-eligible designated beneficiaries subject to 10-year rule, but distributions are
taxed at their rates. Converting during low-income years locks in her tax rate, then tax-free growth for 10 years
maximizes after-tax wealth. Conduit trust (A) still forces 10-year payout and compresses brackets. Direct stretch
(B) triggers immediate taxation at heirs’ rates. CRT (D) sacrifices upside and complexity. Roth conversion yields
highest net inheritance.
Q8: Domain 1 - Retirement Planning Process & Strategies
Using the “Rule of 72,” approximately how many years will it take a portfolio growing at 7.2% nominal to double in
real terms if inflation is 3%?
A. 10
B. 12
C. 14
D. 16
Answer: C
Rationale: Real return ≈ 7.2% – 3% = 4.2%. Rule of 72: .2 ≈ 17 years; closest selection is 14 (approximation
error). Choices A and B ignore inflation; D overstates.
Q9: Domain 2 - Sources of Retirement Income
A widow age 60 whose deceased husband had $2,400 PIA remarries a man age 62 with $1,000 PIA. When can she
receive survivor benefits without restriction?
, 4
A. Age 60, reduced, regardless of remarriage
B. Age 60 only if remarriage occurred after age 60
C. Age 62 if new spouse is collecting
D. Never—remarriage terminates survivor rights
Answer: B
Rationale: Survivor benefits are payable as early as age 60 (71.5% of PIA) but remarriage before age 60 terminates
eligibility. Remarriage at 60 or later preserves survivor rights. Thus choice B is correct. A ignores remarriage timing.
C confuses spousal rules.
Q10: Domain 3 - Retirement Plan Types
Which plan allows the largest deductible contribution for a 55-year-old self-employed individual with $280,000 net
Schedule C profit in 2025?
A. SEP IRA – 20% of net
B. Solo 401(k) with catch-up
C. Defined benefit plan
D. SIMPLE IRA
Answer: C
Rationale: Defined benefit plan permits actuarial contribution based on benefit limit (§415(b))—often $200k+ for
older owners. Solo 401(k) capped at $69,000 + $7,500 catch-up = $76,500. SEP limited to 20% of (280,000 – ½ SE
tax) ≈ $52,000. SIMPLE limit $16,000 + $3,500. Thus DB plan yields highest deduction.
Q11: Domain 4 - Tax & Regulatory Framework
A 401(k) plan fails the ADP test. Which corrective method is NOT permitted under EPCRS?
A. Refund excess to HCEs by March 15 following plan year
B. Forfeit match on refunded amount
C. QNEC to NHCEs to raise passing rate
D. Reclassify excess as after-tax contribution
Answer: D
Rationale: After-tax employee contributions are still subject to ACP test; reclassification does not remedy failed
ADP. EPCRS permits refunds (A), match forfeiture (B), and QNEC (C). Reclassification (D) is disallowed.
Q12: Domain 5 - Investment Strategies for Retirement
Under a “bucket” strategy, which asset class is most appropriate for the 0–2 year cash-flow bucket?
A. Short-term bond ETF
B. High-yield corporate fund
C. 90-day T-bills
D. Emerging-market equity
