CISP IRA Services Professional Exam Free Dumps

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CISP IRA Services Professional exam is easy to take now. Learning CISP exam basic information is a required step. There are 150 multiple-choice questions in real CISP exam, and you have 3 hours to answer all the questions. The required passing score is 500. We provide the latest IRA Services Professional CISP exam dumps, which can make sure you pass the test easily. Free IRA Services Professional CISP exam dumps are available below.

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1. Under what circumstances can an individual recontribute funds to a retirement account after taking a withdrawal?

The individual experienced financial hardship.

The individual received an inheritance.

The individual is over the age of 75.

The individual made excess contributions in the previous year.

2. Which of the following statements is true regarding the contribution deadline for a Traditional IRA for the tax year 2023?

The deadline is April 15, 2023.

The deadline is the taxpayer's tax filing deadline, including extensions.

The deadline is October 15, 2023, with no extensions allowed.

The deadline is December 31, 2023.

3. A taxpayer took a distribution from their Traditional IRA to cover medical expenses.

Which of the following is true regarding the tax treatment of this distribution?

The distribution is exempt from taxes and penalties.

The distribution is exempt from penalties but subject to regular income tax.

The distribution is subject to the 10% early withdrawal penalty, but the taxpayer can deduct the medical expenses on their tax return.

The distribution is subject to both regular income tax and the 10% early withdrawal penalty.

4. Which of the following individuals can withdraw earnings from a Roth IRA tax-free and penalty-free, even if they are under 59 ½?

Individuals who are using the funds for a qualified higher education expense.

Individuals who are using the funds for a first-time home purchase.

Individuals who are using the funds for unreimbursed medical expenses that exceed a certain threshold.

Individuals who are using the funds to pay off credit card debt.

5. Which of the following individuals may be subject to a penalty for excess contributions to their IRA?

An individual who accidentally contributed more than the annual limit to their Traditional IR

An individual who contributed to both a Traditional IRA and a Roth IRA, exceeding the overall annual limit.

An individual who made an IRA contribution for the previous tax year after the tax deadline.

An individual who contributed to their IRA, but their total earned income for the tax year was less than the contribution amount.

6. Which of the following statements are true regarding employer tax benefits for contributing to a SIMPLE IRA plan?

Employer contributions are tax-deductible as a business expense.

Employers are eligible for a tax credit for establishing a SIMPLE IRA plan.

Employers are required to match employee contributions dollar-for-dollar.

Employer contributions are tax-exempt and not subject to any limits.

7. What is the potential advantage of naming a spouse as the primary beneficiary of a retirement account?

The spouse can avoid paying income tax on the inherited funds.

The spouse can delay taking Required Minimum Distributions (RMDs) until age 75.

The spouse can roll over the inherited IRA into their own IR

The spouse can inherit both Traditional and Roth IRAs without tax consequences.

8. Under what circumstance can an IRA account owner withdraw funds before the age of 59 ½ without incurring an early withdrawal penalty?

To pay for qualified higher education expenses

To purchase a first home

To cover medical expenses that exceed a certain threshold

To make a charitable donation

9. A taxpayer who inherits an IRA from a deceased relative has the option to disclaim the inheritance.

Which of the following statements is true regarding disclaiming an inherited IRA?

By disclaiming the inherited IRA, the taxpayer can avoid paying taxes on the inherited funds.

Disclaiming an inherited IRA allows the funds to pass to the next eligible beneficiary.

The taxpayer can only disclaim the inherited IRA if it has already been distributed to them.

Disclaiming an inherited IRA is considered a prohibited transaction.

10. Which of the following transactions allows an individual to undo a previous Roth IRA conversion and move the funds back to a Traditional IRA?

60-day rollover

Recharacterization

Direct transfer

Roth IRA conversion

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11. Which of the following statements is true regarding the taxation of funds converted from a Traditional IRA to a Roth IRA?

The converted funds are always taxed as ordinary income in the year of conversion.

The converted funds are tax-free if the taxpayer is over the age of 59 ½.

The converted funds are subject to a 10% early withdrawal penalty if taken before age 59 ½.

The converted funds are taxed at a lower capital gains tax rate.

12. Which government agency is responsible for penalizing non-compliance with IRA regulations?

Securities and Exchange Commission (SEC)

Federal Reserve System (FRS)

Internal Revenue Service (IRS)

Consumer Financial Protection Bureau (CFPB)

13. Which individuals are generally eligible to contribute to a Traditional IRA for the tax year?

Individuals who are 70 ½ years old or older.

Individuals who have earned income (compensation) for the tax year.

Individuals who have reached the age of 50 or older by the end of the tax year.

Individuals who have already contributed to a Roth IRA for the same tax year.

14. Which of the following beneficiaries have the option to stretch distributions from an inherited IRA over their life expectancy?

Spouse beneficiaries

Non-spouse individual beneficiaries

Trust beneficiaries

Charitable beneficiaries

15. Which of the following statements are true regarding the deadline for employers to establish a SIMPLE IRA plan for a given tax year?

The deadline is April 15 of the following year.

The deadline is October 15 of the following year.

The deadline is January 31 of the current year.

The deadline is October 1 of the current year.

16. Which of the following transactions can be done once per year for each IRA account without triggering taxes or penalties?

Roth IRA conversion

Traditional IRA to Roth IRA rollover

Direct IRA transfer

Recharacterization of a Roth IRA conversion

17. Which of the following actions can lead to the disqualification of an IRA?

Rolling over a Traditional IRA into a Roth IR

Purchasing real estate for personal use within the IR

Investing in publicly traded stocks within the IR

Taking Required Minimum Distributions (RMDs) after age 72.

18. Which of the following statements are true regarding the disclosure rules for IRA fees?

IRA custodians are not required to provide fee disclosures to account owners.

Fee disclosures must be provided annually.

Fee disclosures are only required for certain types of investments.

Fee disclosures are not required for self-directed IRAs.

19. Which of the following IRS forms is used to report federal tax amounts withheld from an IRA?

W-4R

55A

945

6681

20. What happens if an individual fails to repay a coronavirus-related distribution (CRD) to their retirement account within the specified time frame?

The CRD is treated as a permanent withdrawal and subject to taxes and penalties.

The individual must recharacterize the CRD as a Roth IRA contribution.

The individual can claim a one-time extension for repayment without penalties.

The CRD is rolled over into a new retirement account.

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21. With respect to an IRA, a trust may be __________.

A contributor

A custodian

A beneficiary

An IRA holder

22. What happens if an IRA account owner fails to designate a beneficiary?

The IRA account is closed, and the funds are forfeited to the IR

The IRA assets will be transferred to the account owner's estate.

The custodian will automatically designate a beneficiary.

The account will be frozen until a beneficiary is designated.

23. Which of the following investments are considered nontraditional and may require special considerations and due diligence?

Stocks of well-established companies

Government bonds

Real estate partnerships

Certificates of deposit (CDs)

24. In which of the following scenarios is a retirement plan rollover NOT taxable?

Rolling over a Traditional 401(k) to a Roth IR

Rolling over a Traditional IRA to a new employer's 401(k).

Rolling over a Roth 401(k) to a Roth IR

Rolling over a Traditional 401(k) to a Traditional IR

25. Which of the following statements are true regarding distributions from a SEP plan?

Distributions from a SEP plan are always tax-free.

Distributions from a SEP plan are subject to a 10% early withdrawal penalty if taken before age 59 ½.

Distributions from a SEP plan are not required until age 70 ½.

SEP plan distributions can be rolled over into a Roth IRA without tax consequences.

26. What is the penalty for failing to take a Required Minimum Distribution (RMD) from a Roth IRA?

5% of the RMD amount

10% of the RMD amount

25% of the RMD amount

There is no penalty for not taking an RMD from a Roth IR

27. When does the 10% early withdrawal penalty not apply to distributions from a Traditional IRA?

After age 59 ½

For qualified higher education expenses

For first-time homebuyer expenses

For all distributions taken after age 70 ½

28. If an individual contributes to a Roth IRA and later realizes that they exceeded the income limits for Roth IRA eligibility, what can they do to correct the situation?

Recharacterize the excess contribution to a Traditional IR

Withdraw the excess contribution and any associated earnings before the tax deadline.

Pay a penalty on the excess contribution amount.

Convert the Roth IRA into a Traditional IR

29. Which of the following documents serves as the primary governing document for an IRA plan?

IRS Form 1040

IRS Publication 590-A

IRS Form 5305-SEP

IRA Adoption Agreement and Plan Document (AAPD)

30. Which of the following statements is true regarding naming a trust as the beneficiary of an IRA?

Naming a trust as the beneficiary can allow for greater control over the distribution of IRA assets.

A trust cannot be named as the beneficiary of an IR

Naming a trust as the beneficiary can eliminate the need for Required Minimum Distributions (RMDs).

A trust can be named as the beneficiary only for a Roth IRA, not for a Traditional IR

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31. Which of the following statements are true regarding nontraditional investments within an IRA?

Nontraditional investments can offer unique opportunities for diversification.

Nontraditional investments are always prohibited within an IR

Nontraditional investments are typically offered by all IRA custodians.

Nontraditional investments do not require any additional due diligence.

32. Which of the following statements are true regarding distributions from a SIMPLE IRA plan?

Distributions from a SIMPLE IRA plan are always tax-free.

Distributions from a SIMPLE IRA plan are subject to a 10% early withdrawal penalty if taken before age 59 ½.

Distributions from a SIMPLE IRA plan are not required until age 70 ½.

SIMPLE IRA plan distributions can be rolled over into a Roth IRA without tax consequences.

33. Which of the following statements are true regarding the tax treatment of rollovers from a SEP plan to another retirement plan?

Rollovers are always tax-free.

Rollovers are subject to a 10% early withdrawal penalty if taken before age 59 ½.

Rollovers can be done tax-free only if the receiving plan is a Traditional IR

Rollovers can be done tax-free if completed within 60 days.

34. A taxpayer has both earned income and self-employment income in the same tax year.

Which of the following statements is correct regarding IRA contributions?

The taxpayer can contribute to both a Traditional IRA and a SEP IRA in the same year.

The taxpayer can contribute to both a Traditional IRA and a Roth IRA in the same year.

The taxpayer can contribute to a Roth IRA, but not a Traditional IRA, in the same year.

The taxpayer cannot make any IRA contributions due to having self-employment income.

35. In which of the following situations can an individual make a qualified HSA funding distribution (QHFD) to their Health Savings Account (HSA)?

After age 59 ½ to catch up on contributions.

To repay excess contributions to their HS

To fund their HSA with an eligible rollover distribution from their IR

To fund their HSA with a taxable distribution from their 401(k).

36. Which of the following individuals is eligible to participate in a SEP IRA plan established by their employer?

An employee who is under age 21 and has worked for the employer for six months.

An employee who is over age 75 and has worked for the employer for two years.

An employee who earns less than $5,000 per year and has worked for the employer for one year.

An employee who is a non-

citizen and has a valid work visa.

37. Which of the following statements is true regarding the tax treatment of IRA distributions to beneficiaries?

Beneficiaries can always choose to receive the entire IRA balance as a lump sum.

Distributions to non-spouse beneficiaries are always tax-free.

Distributions to beneficiaries are generally taxed as ordinary income in the year of distribution.

Distributions to beneficiaries are not subject to the 10% early withdrawal penalty.

38. A taxpayer completed a 60-day rollover from their 401(k) plan to a Traditional IRA. Due to unforeseen circumstances, they were unable to complete the rollover within the 60-day period.

Which of the following is NOT a valid reason for requesting a waiver of the 60-day rollover rule?

The taxpayer was seriously ill during the rollover period.

The taxpayer was incarcerated during the rollover period.

The taxpayer was on an extended vacation during the rollover period.

The financial institution made an error that prevented the completion of the rollover.

39. What happens if an individual fails to designate a beneficiary for their retirement account?

The retirement account will be closed, and the funds will be forfeited to the IR

The retirement account assets will be transferred to the individual's estate.

The retirement account will be transferred to a charitable organization.

The retirement account custodian will automatically designate a beneficiary.

40. Which of the following individuals is eligible to participate in a SIMPLE IRA plan established by their employer?

An employee who is under age 21 and has worked for the employer for six months.

An employee who is over age 75 and has worked for the employer for two years.

An employee who earns less than $5,000 per year and has worked for the employer for one year.

An employee who is a non-

citizen and has a valid work visa.

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41. A taxpayer converted funds from a Traditional IRA to a Roth IRA during the tax year 2022. In 2023, the taxpayer discovers that the value of the converted funds has decreased significantly.

Can the taxpayer undo the conversion and avoid paying taxes on the original converted amount?

Yes, the taxpayer can recharacterize the conversion back to the Traditional IR

No, recharacterization of Roth IRA conversions is not allowed after the tax year ends.

Yes, the taxpayer can convert the remaining funds back to a Traditional IR

No, the taxpayer must wait until age 59 ½ to convert the funds back to a Traditional IRA without penalties.

42. What is the age at which an individual must begin taking Required Minimum Distributions (RMDs) from their Traditional IRA?

59 ½

70 ½

43. A taxpayer who converted funds from a Traditional IRA to a Roth IRA now wishes to undo the conversion.

Which of the following actions can the taxpayer take to reverse the conversion?

Request a waiver of the conversion penalty from the IR

Recharacterize the conversion as a transfer to a different IRA custodian.

Make a rollover of the converted funds back to the Traditional IR

Convert the funds back to a Traditional IRA using the same tax year's conversion rules.

44. Which investment option is generally considered to have the highest risk within an IRA?

Government bonds

Index funds

Individual stocks

Certificates of deposit (CDs)

45. Which of the following statements is true regarding Required Minimum Distributions (RMDs)?

RMDs are not required from Roth IRAs during the lifetime of the original owner.

RMDs must begin at age 70 ½ for both Traditional and Roth IRAs.

RMDs are calculated based on the life expectancy of the beneficiary for inherited IRAs.

RMDs are subject to a 20% withholding for federal taxes.

46. Which of the following is a crucial aspect of IRA plan establishment and maintenance?

Delivering annual reports to beneficiaries

Designating multiple primary beneficiaries

Conducting regular audits of IRA transactions

Ensuring compliance with contribution limits and distribution rules

47. Which of the following investments are generally considered prohibited within an IRA?

government bonds

Real estate properties

Precious metals

Mutual funds

48. For the tax year 2023, what is the maximum total contribution limit for a taxpayer who contributes to both a Traditional IRA and a Roth IRA?

$6,000

$12,000

$19,500

$26,000

49. A taxpayer makes contributions to both a Traditional IRA and a Roth IRA in the same tax year.

What is the maximum total contribution limit for the taxpayer for the tax year 2023?

$6,000

$12,000

$19,500

$26,000

50. Which of the following investments are commonly prohibited within an IRA?

government bonds

Collectibles (e.g., artwork, antiques)

Individual stocks

Mutual funds

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51. What is the penalty for failing to withdraw excess contributions from an IRA by the tax deadline?

10% of the excess contribution amount

25% of the excess contribution amount

50% of the excess contribution amount

The penalty is equal to the amount of the excess contribution.

52. Which of the following statements are true regarding the portability of SEP and SIMPLE plans?

SEP plans can be rolled over into a Traditional IRA or a new employer's retirement plan.

SIMPLE IRA plans can be rolled over into a Traditional IRA or a new employer's retirement plan.

Both SEP and SIMPLE plans can be rolled over into a Roth IRA without penalties.

Both SEP and SIMPLE plans can be rolled over into a 401(k) plan without penalties.

CISP IRA Services Professional Exam Free Dumps

CISP IRA Services Professional Exam Free Dumps

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