CIP IRA Professional Mock Tests

About this course

Domain 1: IRA Distribution RequirementsThis is the largest section of the exam, focusing on how money leaves an IRA and the tax implications thereof.General Taxation and Withholding: Application of IRS Form 1099-R, federal and state tax withholding rules (Form W-4R), and the 10% early distribution penalty.Required Minimum Distributions (RMDs): Calculating RMDs using the Uniform Lifetime Table, the SECURE 2.0 Act age requirements (currently age 73/75), and the 25% excise tax for failure to take an RMD (reducible to 10%).Death Distribution Rules: Distinctions between "Designated Beneficiaries," "Eligible Designated Beneficiaries" (EDBs), and non-person beneficiaries. Rules for the 10-year payout vs. the life expectancy method.Penalty Exceptions: Understanding the "Series of Substantially Equal Periodic Payments" (72(t) rules), first-time homebuyer, and qualified higher education expense exceptions.Domain 2: Retirement Plan PortabilityThis section covers the movement of assets between different types of retirement plans.Transfers vs. Rollovers: Differences between trustee-to-trustee transfers (unlimited) and 60-day indirect rollovers (once-per-12-month rule).Conversions: Moving assets from Traditional, SEP, or SIMPLE IRAs to a Roth IRA, including the tax consequences and the "Pro-Rata" rule for after-tax assets.Recharacterizations: Rules for "undoing" a contribution and moving it between a Traditional and Roth IRA before the tax-filing deadline.Employer Plan Rollovers: Direct vs. Indirect rollovers from 401(k), 403(b), and governmental 457(b) plans into IRAs.Domain 3: IRA Documentation and MaintenanceCompliance-heavy section focused on the legal "paperwork" of an IRA.<