Investment vehicle selection and retirement account rules and distribution concepts tested on the CFP exam.
44 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a stock?
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An ownership share in a corporation that may provide dividends and capital appreciation.- What is a bond?
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A debt security representing a loan to a corporation or government, typically paying fixed interest.- What is a mutual fund?
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An investment fund that pools money from many investors to purchase a diversified portfolio of securities.- What is an ETF?
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Exchange-traded fund, a fund that trades on an exchange like a stock but holds a basket of underlying securities.- What is a REIT?
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Real Estate Investment Trust, a security that allows investors to own shares in real estate holdings or mortgages.- What is the 2026 Traditional IRA contribution limit for those under age 50?
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$7,000- What is the 2026 Roth IRA contribution limit for those under age 50?
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$7,000- How do contributions to a Traditional IRA differ from contributions to a Roth IRA?
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Traditional IRA contributions may be tax-deductible; Roth IRA contributions are not deductible.- How do distributions from a Traditional IRA differ from distributions from a Roth IRA?
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Traditional IRA distributions are generally taxable as ordinary income; qualified Roth distributions are tax-free.- Who may establish a SEP IRA?
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Self-employed individuals and business owners with employees.- What is the 2026 SEP IRA contribution limit?
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Up to 25% of net self-employment income or $70,000, whichever is less.- Who may establish a SIMPLE IRA?
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Employers with 100 or fewer employees.- What is the 2026 SIMPLE IRA contribution limit?
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$16,500 for employees under age 50.- Who may establish a Solo 401(k)?
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Self-employed individuals with no employees other than a spouse.- What is a Traditional 401(k)?
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An employer-sponsored retirement plan allowing employees to make pre-tax contributions with potential employer matching.
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