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Foreign Tax Credit
A U.S. taxpayer earns income from both U.S. and foreign sources and pays income tax to a foreign government. Which of the following limits the amount of foreign tax credit that may be claimed? The taxpayer’s adjusted gross income The taxpayer’s marginal tax bracket The amount of U.S. tax attributable to foreign-source income The taxpayer’s…
CFP Board Opens Public Comment Period on New Code and Standards Proposals
CFP® Board Updates On January 29, 2026, the CFP Board announced a 60-day public comment period for proposed updates to its Code of Ethics and Standards of Conduct, as well as related procedural rules. These proposed changes reflect the Board’s ongoing efforts to strengthen the profession’s ethical framework and respond to the evolving landscape of…
Maximum Family Benefit
Course: Insurance PlanningLesson 10: Social Security Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving benefits…
Roth IRA Contribution Eligibility
In 2026, which of the following taxpayers may make a full Roth IRA contribution, assuming all other eligibility requirements are met? Single filer with MAGI of $270,000 Married filing jointly with MAGI of $255,000 Head of household with MAGI of $130,000 Married filing separately with MAGI of $15,000 CLICK TO REVEAL ANSWER Expand C is…
CFP Board Announces Updates to the Competency Standards
CFP® Board Updates The CFP Board has finalized its updates to the Competency Standards – and while this may sound procedural, the implications for the profession are far-reaching. These changes reflect a fundamental evolution in how the CFP Board defines competence: moving from task-based checklists to judgment-based decision-making. The updates were approved following an open…
Interest Rate Risk in a Bond
Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate changes. What…
Taxable Income
A CFP® professional is reviewing a client’s Form 1040. Which of the following best describes how taxable income is calculated? Total income reduced by tax credits Adjusted gross income reduced by deductions Gross income reduced by exclusions Total income reduced by adjustments and credits CLICK TO REVEAL ANSWER Expand B is the answer. Taxable income =…
Cybersecurity Best Practices for CFP® Professionals
Good to Know In an increasingly digital advisory environment, cybersecurity is no longer an IT issue – it’s a core component of fiduciary duty. CFP® professionals are entrusted with clients’ most sensitive personal and financial data, and a breach of that trust can carry not only financial consequences, but reputational damage and potential regulatory scrutiny.…
Appropriate Emergency Fund
Course: Fundamentals of Financial PlanningLesson 3: Personal Financial Statements Student Question: Hi, Why is the answer to review question down below 22,500 (only 3 months of income needed)? I would have thought it would be 45,000 (six months of income needed). I thought six months would be needed since they (1) both did not have…