Blog
Breaking Down the ‘Big Beautiful Bill’: 2025 Retirement Proposals and Their Impact
CFP® Board In The News Washington is once again revisiting retirement reform – and the latest proposal, dubbed the ‘Big Beautiful Bill’ by its bipartisan sponsors, could have a significant impact on retirement planning for millions of Americans. What’s in the Bill? Increased catch-up contributions for workers aged 60 and older. Expanded access to Roth…
Qualified Plan Distributions After Death
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: Hi- The lesson says: Annual distributions are required in years 1 – 9 if the participant died after his or her required beginning date. Any undistributed amount must then be distributed no later than December 31 of the tenth year following the year of…
Required Minimum Distribution Penalty
After Maria reaches age 73, she fails to take her required minimum distribution (RMD) from her traditional IRA. What is the consequence under current tax law? A 25% excise tax on the amount not withdrawn A 70% excise tax on the amount not withdrawn A 10% penalty plus ordinary income tax No penalty if she…
AI Guidance for CFP® Professionals: CFP Board Drafts New Ethics Guidance
CFP® Board Updates The CFP Board is proactively addressing how artificial intelligence intersects with the ethics and standards expected of CFP® professionals. On November 7, 2025, the Board announced the development of new guidance aimed at helping certificants ethically and responsibly integrate AI tools into financial planning practices. Why the CFP Board Is Acting Now…
Explaining Duration
Course: Investment PlanningLesson 10: Fixed Income Securities Student Question: I am trying to wrap my head around this. From the explanation the duration seems the point where half of the payback has happened. Is that a decent way of thinking about it? Instructor Response: Close. Duration is the weighted-average time it takes to receive the…
Correlation of a Portfolio
An investor owns two mutual funds. Fund A has an expected return of 8% and a standard deviation of 10%; Fund B has an expected return of 12% and a standard deviation of 20%. The correlation between the funds is 0.4. Which of the following statements is most accurate? Combining the two funds will not…
The Impact of ESG and Sustainable Finance on Financial Planning: How CFP® Professionals Can Lead
Good to Know As investors increasingly seek to align portfolios with personal values, Environmental, Social, and Governance (ESG) factors have moved from niche interest to mainstream consideration in financial planning. For CFP® professionals, meeting this demand isn’t just a matter of offering ESG‑labeled products – it’s about guiding clients through meaningful choices while upholding fiduciary…
Clarifying Tort Liability
Course: Retirement PlanningLesson 2: Qualified Plan Advantages and Disadvantages for Employees and Business Owners Student Question: I have a few questions regarding tort liability. Instructor Response: Good questions here. See below for my response to each.
Maximum Employee Contribution to 401(k)
A participant age 52 wants to contribute the maximum elective deferral to her 401(k) plan in 2025. What is the maximum employee contribution, including any catch-up? $23,000 $24,000 $30,500 $34,500 CLICK TO REVEAL ANSWER Expand C is the answer. For 2025, the 401(k) elective deferral limit is $23,000 plus a $7,500 catch-up for those age…