CRC Retirement Planning 3

Question 1

Which Medicare part covers inpatient hospital stays, skilled nursing facility care, and hospice?

Accepted Answer

Medicare Part A

Answer

Medicare Part A covers inpatient hospital care, skilled nursing facility stays, hospice, and some home health care.

Question 2

A retiree using a 'bucket strategy' typically fills the first bucket with assets intended to cover how many years of expenses?

Accepted Answer

3–5 years

Answer

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.

Question 3

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:

Accepted Answer

10 years

Answer

Under the SECURE Act, most non-spouse beneficiaries must fully distribute inherited IRAs within 10 years of the original owner's death.

Question 4

Which type of annuity provides a guaranteed income stream that begins immediately after a lump-sum purchase?

Accepted Answer

Immediate fixed annuity (SPIA)

Answer

A Single Premium Immediate Annuity (SPIA) converts a lump sum into an income stream that starts within one payment period of purchase.

Question 5

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?

Accepted Answer

50%

Answer

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.

(CRC) Certified Retirement Counselor Practice Test

(CRC) Certified Retirement Counselor Practice Test

CRC Retirement Planning 3