RFC Cheat Sheet 2026

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

1. When a conflict arises between standard procedures and a unique situation in Tax Planning & Optimization, what should a RFC professional prioritize? → Safety and ethical obligations while seeking expert consultation
2. Under IRC Section 409A, which of the following is NOT a permissible distribution trigger for a nonqualified deferred compensation plan? → The executive's voluntary request at any time
3. What is the PRIMARY purpose of continuing education requirements in Cash Flow & Debt Management for RFC professionals? → Maintaining current knowledge and competency as the field evolves
4. Which primary advantage does a cross-purchase buy-sell agreement provide to surviving owners compared to an entity purchase (stock redemption) agreement? → Surviving owners receive a stepped-up cost basis in the purchased interest
5. In Insurance Planning & Risk Management, what is the FIRST step a RFC professional should take when encountering a new case or situation? → Conduct a comprehensive assessment and gather all relevant information
6. What is the primary goal of asset allocation? → Balance risk and return
7. What is the PRIMARY purpose of continuing education requirements in Education Funding Planning for RFC professionals? → Maintaining current knowledge and competency as the field evolves
8. Which standard of practice is MOST important for ensuring quality in Tax Planning & Optimization? → Following evidence-based protocols while adapting to specific circumstances
9. In Retirement Planning & Strategies, what is the FIRST step a RFC professional should take when encountering a new case or situation? → Conduct a comprehensive assessment and gather all relevant information
10. What is the PRIMARY purpose of continuing education requirements in Investment Analysis & Selection for RFC professionals? → Maintaining current knowledge and competency as the field evolves
11. An executive receives incentive stock options (ISOs). At the time of exercise, the tax consequence for regular income tax purposes is: → No regular income tax is recognized, though the spread may be an AMT preference item
12. Which of the following is considered a tax-deferred investment account? → Traditional IRA
13. What does risk management involve in financial planning? → Protecting assets from loss
14. When a conflict arises between standard procedures and a unique situation in Cash Flow & Debt Management, what should a RFC professional prioritize? → Safety and ethical obligations while seeking expert consultation
15. Which business valuation approach estimates value by dividing a company's normalized earnings by an appropriate capitalization rate? → Income approach using capitalization of earnings
16. Which of the following is a core principle of ethical financial planning? → Integrity
17. What is the PRIMARY purpose of continuing education requirements in Social Security & Medicare Planning for RFC professionals? → Maintaining current knowledge and competency as the field evolves
18. In Investment Analysis & Selection, what is the FIRST step a RFC professional should take when encountering a new case or situation? → Conduct a comprehensive assessment and gather all relevant information
19. When a conflict arises between standard procedures and a unique situation in Insurance Planning & Risk Management, what should a RFC professional prioritize? → Safety and ethical obligations while seeking expert consultation
20. Which business valuation method determines value primarily by comparing the subject company to recent sale prices of similar businesses? → Market approach
21. Which type of IRA allows for tax-free withdrawals in retirement? → Roth IRA
22. What is the PRIMARY purpose of continuing education requirements in Insurance Planning & Risk Management for RFC professionals? → Maintaining current knowledge and competency as the field evolves
23. What is the primary purpose of life insurance in financial planning? → To protect loved ones financially
24. Which standard of practice is MOST important for ensuring quality in Estate Planning & Wealth Transfer? → Following evidence-based protocols while adapting to specific circumstances
25. What does the fiduciary duty of a financial consultant require? → Acting in the client’s best interest
26. A 'golden parachute' payment triggers a 20% excise tax under IRC Section 4999 when it equals or exceeds what threshold? → 3 times the executive's average annual compensation
27. Which strategy is typically used for long-term investment growth? → Buy and hold
28. What should a consultant do when faced with a conflict of interest? → Notify the client and disclose the conflict
29. What is the main advantage of a trust in estate planning? → Avoid probate
30. When should retirement planning ideally begin? → As early as possible