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Latest CISP Exam Practice Questions

The practice questions for CISP exam was last updated on 2025-11-12 .

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Question#1

Which of the following statements is true regarding the tax deductibility of contributions to a Traditional IRA?

A. All contributions to a Traditional IRA are tax-deductible, regardless of the taxpayer's income level.

B. Taxpayers covered by an employer-sponsored retirement plan can always deduct their Traditional IRA contributions.

C. Taxpayers with high incomes may face limits or restrictions on the tax deductibility of their Traditional IRA contributions.

D. Taxpayers who contribute to a Roth IRA can also deduct their Traditional IRA contributions.

Question#2

Which of the following investments are considered traditional and are commonly allowed within an IRA?

A. Precious metals

B. Real estate properties

C. Mutual funds

D. Cryptocurrencies

Question#3

Which of the following penalties may apply if an IRA account owner fails to take the required minimum distribution (RMD)?

A. 5% penalty on the RMD amount

B. 10% penalty on the RMD amount

C. 20% penalty on the RMD amount

D. 50% penalty on the RMD amount

Question#4

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?

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

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

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

D. Disclaiming an inherited IRA is considered a prohibited transaction.

Question#5

What is the time limit for completing a direct rollover from one retirement plan to another to avoid tax withholding?

A. 30 days

B. 60 days

C. 90 days

D. There is no time limit for a direct rollover.

Exam Code: CISPQ & A: 175 Q&AsUpdated: 2025-11-12

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