CPA Exam Lab
Section 1: 30–40%T3

Retirement and Personal Financial Planning

Exam Insight

TCP requires you to advise clients on retirement vehicles and personal finances, balancing current and future tax rates. You must compare traditional and Roth accounts, time conversions, apply RMD rules, and analyze Social Security taxation, the saver's credit, insurance, and cash flow.

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What AICPA Wants You to Know

  • 1Compare traditional and Roth IRAs on deductibility, taxation of distributions, and required distributions.
  • 2Evaluate Roth conversions and the bracket conditions that make them attractive.
  • 3Apply required minimum distribution rules beginning at age 73.
  • 4Determine the taxable portion of Social Security benefits using provisional income.
  • 5Identify the saver's credit and the 10 percent early-withdrawal penalty exceptions.
  • 6Integrate insurance, risk management, net worth, and cash-flow analysis into a financial plan.