Practice Test Geeks(CEA) Certified Estate Advisor Practice Test
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Retirement Planning & IRA Estate Strategies Flashcards

7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Under the SECURE Act 2.0 (effective 2023), at what age must required minimum distributions (RMDs) begin for individuals born between 1951 and 1959?

    Answer: 73

    SECURE Act 2.0 increased the RMD starting age to 73 for individuals born between 1951 and 1959, and to 75 for those born in 1960 or later.

  2. Which type of IRA provides tax-free qualified distributions in retirement and can pass income-tax-free to heirs?

    Answer: Roth IRA

    Roth IRAs are funded with after-tax contributions, and qualified distributions—including to beneficiaries—are completely income-tax-free.

  3. Under the SECURE Act (2019), most non-spouse beneficiaries who inherit an IRA must distribute all funds within how many years of the owner's death?

    Answer: 10 years

    The SECURE Act eliminated the 'stretch IRA' for most non-spouse beneficiaries, requiring full distribution within 10 years of the original owner's death.

  4. Which group qualifies as Eligible Designated Beneficiaries (EDBs) under the SECURE Act, allowing them to stretch IRA distributions over their lifetime?

    Answer: Surviving spouses, minor children, and disabled individuals

    EDBs include surviving spouses, minor children of the owner (until age of majority), disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the owner.

  5. What is the excise tax penalty under SECURE Act 2.0 for failing to take a required minimum distribution (RMD)?

    Answer: 25% of the amount not distributed

    SECURE Act 2.0 reduced the RMD failure penalty from 50% to 25% of the amount that should have been distributed, and further to 10% if corrected within a timely correction window.

  6. A Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to donate directly from their IRA to a charity. What is the annual per-person limit?

    Answer: $100,000

    Individuals aged 70½ or older can make QCDs up to $100,000 annually directly from their IRA to qualified charities, which counts toward their RMD and is excluded from taxable income.

  7. Which of the following best describes the 'stretch IRA' strategy that was largely eliminated by the SECURE Act for most beneficiaries?

    Answer: Allowing non-spouse beneficiaries to take distributions over their own life expectancy

    The stretch IRA allowed non-spouse beneficiaries to take minimum distributions over their own life expectancy, potentially deferring taxes for decades—a benefit eliminated for most beneficiaries by the SECURE Act.