CTFA Retirement and Employee Benefits Planning

Question 1

What is the required beginning date (RBD) for taking required minimum distributions (RMDs) from a traditional IRA under the SECURE 2.0 Act?

Accepted Answer

April 1 following the year the owner turns 73

Answer

Under the SECURE 2.0 Act, the required beginning date for RMDs shifted to April 1 following the year the IRA owner reaches age 73 (as of 2023).

Question 2

Under ERISA, which of the following is the correct definition of a plan fiduciary?

Accepted Answer

Anyone who exercises discretionary authority over plan management or assets or provides investment advice for compensation

Answer

ERISA defines a fiduciary functionally—anyone exercising discretionary control over plan management, assets, or providing investment advice for compensation qualifies.

Question 3

Which type of IRA allows qualified distributions to be completely tax-free in retirement?

Accepted Answer

Roth IRA

Answer

Roth IRA contributions are made with after-tax dollars, so qualified distributions of both contributions and earnings are completely income-tax-free in retirement.

Question 4

The 10-year rule under the SECURE Act requires most non-spouse inherited IRA beneficiaries to do which of the following?

Accepted Answer

Distribute the entire inherited IRA within 10 years of the owner's death

Answer

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

Question 5

Which qualified retirement plan type allows employer contributions only, with no employee elective deferrals?

Accepted Answer

Simplified Employee Pension (SEP-IRA)

Answer

SEP-IRAs are funded exclusively by employer contributions and do not allow employees to make elective salary deferrals.

CTFA - Certified Trust and Fiduciary Advisor Practice Test

CTFA - Certified Trust and Fiduciary Advisor Practice Test

CTFA Retirement and Employee Benefits Planning