RFC Study Guide 2026
Everything you need to pass the RFC exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 RFC Exam Format at a Glance
📚 RFC Topics to Study (63)
✍️ Sample RFC Questions & Answers
1. A high-income couple (MAGI $250,000) wishes to contribute to a Coverdell ESA. Which strategy would allow them to fund it?
Since the income limits apply to the contributor, having the child make the contribution using gifted funds is a common workaround for high-income parents.
2. Which of the following best describes the 'three-year rule' under IRC §2035?
Under IRC §2035, if the decedent transferred an incident of ownership in a life insurance policy within three years of death, the policy proceeds are included in the gross estate.
3. Which type of analysis evaluates macroeconomic factors, industry conditions, and company fundamentals to determine investment value?
Fundamental analysis examines economic data, industry dynamics, and company financials (earnings, assets, liabilities) to estimate intrinsic value.
4. What is diversification in portfolio management?
Diversification is a strategy that involves investing in a variety of assets across different asset classes, industries, and geographies. The goal is to reduce overall portfolio risk by ensuring that a poor performance in one investment does not severely impact the entire portfolio. It helps smooth out returns over time, as different assets may perform well at different times.
5. The Black-Litterman model improves upon mean-variance optimization primarily by:
Black-Litterman blends the investor's subjective views with implied equilibrium returns derived from market capitalization weights to produce more stable portfolios.
6. A married couple wants to superfund a 529 plan for their newborn grandchild. What is the maximum lump-sum contribution they can make using the 5-year gift tax averaging election?
A married couple can each contribute $18,000 × 5 years = $90,000, for a combined total of $180,000 under the 5-year election (2024 annual exclusion amounts).