Retirement Planning Flashcards
7 cards from real CRC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Retirement Planning flashcards as text
Which Medicare part covers inpatient hospital stays, skilled nursing facility care, and hospice?
Answer: Medicare Part A
Medicare Part A covers inpatient hospital care, skilled nursing facility stays, hospice, and some home health care.
A retiree using a 'bucket strategy' typically fills the first bucket with assets intended to cover how many years of expenses?
Answer: 3–5 years
The first bucket in a bucket strategy typically holds 3–5 years of living expenses in cash or short-term instruments to cover near-term needs.
A client aged 70½ inherits a traditional IRA from a non-spouse. Under current rules, non-spouse beneficiaries who are not eligible designated beneficiaries must withdraw all funds within:
Answer: 10 years
Under the SECURE Act, most non-spouse beneficiaries must fully distribute inherited IRAs within 10 years of the original owner's death.
Which type of annuity provides a guaranteed income stream that begins immediately after a lump-sum purchase?
Answer: Immediate fixed annuity (SPIA)
A Single Premium Immediate Annuity (SPIA) converts a lump sum into an income stream that starts within one payment period of purchase.
In the context of Social Security spousal benefits, a spouse who has never worked can receive a maximum spousal benefit equal to what percentage of the worker's full retirement age benefit?
Answer: 50%
A spouse with no work record is entitled to a spousal benefit of up to 50% of the worker's primary insurance amount (PIA) at FRA.
The 'glide path' in target-date retirement funds refers to:
Answer: The gradual shift from higher equity allocation to higher fixed-income allocation as the target date approaches
A glide path describes how a target-date fund progressively reduces equity exposure and increases fixed income as the investor nears and enters retirement.
What is the primary purpose of a Qualified Longevity Annuity Contract (QLAC) within a retirement account?
Answer: To defer income to advanced age (up to 85) while reducing current RMD calculations
A QLAC allows retirement savers to use a portion of IRA funds to purchase a deferred annuity starting as late as age 85, and those funds are excluded from RMD calculations until payments begin.