CRC Cheat Sheet 2026

The 30 highest-yield CRC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. The Net Unrealized Appreciation (NUA) strategy is most applicable when a retiree has: → Employer stock distributed from a qualified plan in a lump-sum distribution
2. What does the term 'dual relationship' mean in the context of retirement counseling ethics? → Having both a professional and personal relationship with a client simultaneously
3. A plan that provides different contribution rates to different employee classes must generally pass which IRC section test? → Section 401(a)(4) nondiscrimination testing
4. Which withdrawal sequencing strategy is generally considered most tax-efficient for retirees holding taxable, tax-deferred, and Roth accounts? → Withdraw from taxable accounts first, then tax-deferred, then Roth last
5. Which ethical principle requires a retirement counselor to act in the client's best interest, even when it conflicts with the counselor's own financial gain? → Fiduciary duty
6. Which withdrawal strategy is designed to keep a retiree's portfolio balanced by withdrawing proportionally from each asset class? → Proportional withdrawals
7. What is the significance of peer review in communication & stakeholder management for CRC professionals? → It promotes accountability, knowledge sharing, and quality improvement
8. Which of the following is a common retirement savings vehicle? → 401(k) plan
9. For a CRC client heavily concentrated in employer stock, what is the primary risk that must be addressed? → Concentration risk
10. What is a required minimum distribution (RMD)? → Mandatory withdrawal from retirement accounts
11. What is informed consent? → Understanding and agreement by the client
12. Which measure captures how much of a pre-retirement income a retiree actually needs to maintain their standard of living? → Replacement rate
13. What is a diversified income strategy? → Mix of annuities, Social Security, and investments
14. What is a common challenge professionals face when applying professional standards & ethics principles in Certified Retirement Counselor? → Balancing theoretical knowledge with practical application
15. Under ERISA, which entity is responsible for the prudent management and investment of defined contribution plan assets? → The plan administrator and named fiduciaries
16. Which income source is guaranteed for life? → Social Security
17. What is active listening? → Fully focusing on and responding to the speaker
18. Which agency insures defined benefit pension plans? → PBGC
19. Why are counseling skills important in retirement planning? → To establish trust and rapport
20. A Roth IRA conversion is most advantageous when the account holder expects their tax rate in retirement to be: → Higher than their current tax rate
21. Which of the following best describes a key competency required for professional standards & ethics in CRC certification? → Critical thinking and evidence-based decision making
22. What is the COLA (Cost-of-Living Adjustment) for Social Security benefits based on? → The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
23. Which quality improvement method is most applicable to quality assurance & continuous improvement in Certified Retirement Counselor? → Plan-Do-Check-Act (PDCA) continuous improvement cycle
24. A client wants maximum monthly income from their pension but is worried about their spouse's security. Which option BEST addresses this concern? → Life-only option with separate term life insurance to protect the spouse
25. What is the purpose of a client engagement letter or written agreement in retirement counseling? → To clearly define the scope of services, fees, and responsibilities of both parties
26. Which scenario best illustrates a breach of confidentiality in retirement counseling? → Sharing a client's account balances with their employer without consent
27. A 457(b) plan is distinct from a 401(k) in that early distributions prior to age 59½ from a governmental 457(b) are: → Not subject to the 10% early withdrawal penalty
28. A retiree using a 'bucket strategy' typically fills the first bucket with assets intended to cover how many years of expenses? → 3–5 years
29. What does Medicare Part B cover and what is its cost structure? → Outpatient medical services, funded by monthly premiums plus cost-sharing
30. During a group retirement planning seminar, a participant discloses sensitive personal financial information. How should the counselor handle this? → Immediately redirect the discussion to protect the participant's privacy