Free CFP® Exam Practice Questions – Retirement Savings and Income Planning

CFP® exam practice questions on Achieve are designed in such a way that it resembles the CERTIFIED FINANCIAL PLANNER™  exam pattern. The CFP® exam pattern comprises 170 questions to be solved in two sessions. Familiarization with the CFP® exam questions is a must before you enter the hall so that you can plan better for the test. CFP® Exam Prep by Achieve offers you free ten CERTIFIED FINANCIAL PLANNER™ exam practice questions to help you understand what kind of MCQs can be asked from the subject – Retirement Savings and Income Planning.

Q1. Employees with less than how many years of service may be denied access to an employee stock purchase plan (ESPP)?

A. 1

B. 2

C. 3

D. 5

A. 30 days

B. 6 months

C. 18 months

D. One year

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Q3. What is the penalty amount if withdrawals are made within the first two years of SIMPLE IRA plan participation?

A. 10%

B. 15%

C. 20%

D. 25%

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Q4. Which of the following plans is best suited for young employees?

A. Defined benefit plan

B. Target benefit plan

C. Cash balance plan

D. Money purchase plan

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Q5. Which of the following prevents hostile takeovers of a company’s stock?

A. Pension plans

B. Government regulations

C. IRAs

D. Stock bonus plans

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Q6. At what age do mandatory minimum distributions from retirement plans begin under the SECURE Act?

A. 70

B. 72

C. 65

D. 68

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Q7. Answer the following question using the CFP Board tax tables for 2021. Wade and Lucy are a married couple who have filed a combined tax return. They made $245,000 last year. Which of the following statements is correct?

A. can put the first portion of their earnings into a Roth IRA and the rest into a traditional IRA.

B. They can contribute to a Roth IRA for one more year

C. They are ineligible to contribute to a Roth IRA

D. They can continue to contribute to a Roth IRA until their income hits $250,000

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Q8. All employees are covered by a defined benefit plan provided by the company. The plan does, however, deliver 70% of the employer’s benefits to key employees, making it a top-heavy plan. What is the employer’s minimal contribution on behalf of non-key employees?

A. 2%

B. 3%

C. 5%

D. 7%

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Q9. Profit sharing contributions must be:

A. Collective and negotiated

B. Minimal and insignificant

C. Substantial and recurring

D. Definite and final

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Q10. What is the maximum amount that a 401(k) loan can be?

A. $50,000 or 25% of the participant’s accrued benefit

B. $50,000 or 50% of the participant’s accrued benefit

C. $25,000 or 25% of the participant’s accrued benefit

D. $25,000 or 50% of the participant’s accrued benefit

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Now, as you have solved the CFP® exam practice questions, it can help you gain clarity on the pattern. When you do an in-depth analysis of the questions you solve, you will be able to judge which concepts you are getting wrong. By practicing more such questions at CFP® Exam Prep by Achieve, you can review your prep level for all the topics of the CFP® exam syllabus. Knowing your areas of strengths and weaknesses can help you rethink the preparation strategy and study accordingly.