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Defined Benefit Plan Reversion Tax
Lucky Star Corp has been extremely lucky with their defined benefit plan as it is currently overfunded. Management decided to terminate the plan while they are overfunded and share the excess with the employees. What amount of reversion tax will Lucky Star Corp have to pay upon termination? 0% 10% 20% 50% CLICK TO REVEAL…
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What CFP® Professionals Need to Know About the One Big Beautiful Bill: Opportunities and Risks
CFP® Board In The News The recently passed One Big Beautiful Bill (OBBBA) is making headlines, not just for its sweeping tax code changes, but for the long-term planning ripple effects it introduces. While the CFP Board has rightly spotlighted the bill’s implications for 529 plans, standard deductions, and SALT caps, this legislation extends far…
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Passing Property Via Will
Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through will as the situation does not involve a…
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Common Stock vs Preferred Stock
Which of the following statements correctly describes a difference between preferred stock and common stock? Preferred stockholders generally have voting rights, while common stockholders do not. Preferred stock dividends are typically fixed and paid before common stock dividends. Common stock dividends must be paid, while preferred dividends are optional. Common stockholders have a higher claim on…
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CFP Board Breaks Down the One Big Beautiful Bill: Key Planning Provisions CFP® Pros Should Know
CFP® Board Updates On July 7, 2025, the CFP Board issued a comprehensive summary of the tax provisions included in the recently passed One Big Beautiful Bill (OBBBA) – a landmark piece of legislation that makes sweeping changes to the federal tax code. This legislation, originally proposed as the Tax Simplification and Prosperity Act of…
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Calculating Rate of Return
Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: Can you help solve a practice question? I looked through the textbook and my notes, and just couldn’t wrap my brain about how to solve the problem below. The confusing part to me is that the fund was not sold, so there is no sales price,…
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Fully Insured vs Currently Insured
Which of the following clients would be considered fully insured under Social Security rules? Maria, age 45, who has earned 10 quarters of coverage in the past 10 years. James, age 62, who has earned 40 quarters of coverage over his lifetime. Angela, age 28, who has earned 6 quarters of coverage in the past 13…
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The Career and Salary Outlook for CFP® Professionals in 2025 and Beyond
Good to Know If you’ve ever considered becoming a Certified Financial Planner™, now is the time to act. Demand for financial advisors is rising, consumer expectations are evolving, and the CFP® designation is more than just a certification – it’s a competitive advantage. In a field increasingly shaped by trust, regulation, and specialization, CFP® professionals…
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FICA Taxation
Course: Income Tax PlanningLesson 10: Social Security Student Question: Do I understand correctly that all FICA paid in case of employment is deductible/ paid pre-tax (by company as well as employee), whereas in case of self-employment only half is deductible? Instructor Response: Not quite. Employees do not get a deduction for their FICA share. Employers…
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