ABA IRA Services Professional (CISP) Certification Sample Questions

01. 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? 
a) $6,000
b) $12,000
c) $19,500
d) $26,000

02. Which of the following data is protected by the privacy provisions of the Gramm-Leach-Bliley law?
a) Public personal information
b) Public institutional information
c) Nonpublic personal information
d) Nonpublic institutional information

03. Tom and Rosa are married. Both are over age 50. Each has a Traditional IRA. Tom earned $1,800 and Rosa earned $48,000 last year. If they file separate income tax forms, the amount that can be contributed to Tom's IRA is limited to_______.
a) $1,800
b) $2,300
c) $6,000
d) $7,000

04. When designating beneficiaries for a retirement account, which of the following individuals are eligible to be named as beneficiaries?
a) Charitable organizations
b) Children (of any age)
c) Siblings
d) Spouse

05. What is the potential advantage of naming a spouse as the primary beneficiary of a retirement account?
a) The spouse can avoid paying income tax on the inherited funds.
b) The spouse can delay taking Required Minimum Distributions (RMDs) until age 75.
c) The spouse can roll over the inherited IRA into their own IRA.
d) The spouse can inherit both Traditional and Roth IRAs without tax consequences.

06. Under what circumstance can an IRA account owner withdraw funds before the age of 59 ½ without incurring an early withdrawal penalty?
a) To pay for qualified higher education expenses
b) To purchase a first home
c) To cover medical expenses that exceed a certain threshold
d) To make a charitable donation

07. Which of the following best describes how many rollovers can be made from a qualified employer plan to an IRA?
a) 1 every 6 months
b) 1 every 12 months
c) 1 every 2 years
d) More than 1 per year

08. Which of the following IRS forms is used to report federal tax amounts withheld from an IRA?
a) W-4R
b) 55A
c) 945
d) 6681

09. 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?
a) Recharacterize the excess contribution to a Traditional IRA.
b) Withdraw the excess contribution and any associated earnings before the tax deadline.
c) Pay a penalty on the excess contribution amount.
d) Convert the Roth IRA into a Traditional IRA.

10. With respect to an IRA, a trust may be __________.
a) A contributor
b) A custodian
c) A beneficiary
d) An IRA holder