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CFP Board Releases New Compliance Resources
CFP® BOARD UPDATES The CFP Board has developed and made available a series of resources that will help CFP® Professionals navigate the sometimes choppy waters of CFP Board compliance. These guidance resources help CFP® Professionals understand and comply with the Code of Ethics and Standards of Conduct. These resources include: An FAQ to help locate…
Custodial Accounts and Gifting
Course: Estate PlanningLesson 13: Case Study Online Student Question: If a check given by Mary to Peter was deposited into a custodial account where Mary was the custodian, doesn’t that mean that Mary didn’t give up ALL control, so it’s not a completed gift? Thanks, Megan Instructor Response: Hi Megan, That’s a great way to…
Actuarial Assumptions in Defined Benefit Pension Plans
Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a Defined Benefit Pension Plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution…
IRS Discount “Coupons” – Flexible Spending Arrangements
Good to Know If your doctor emailed a 35% discount coupon to your inbox, would you take the free money? Your clients that are under-utilizing Flexible Spending Arrangements to pay medical and child-care costs may be throwing away free money. How? Contributions to the Flexible Spending Arrangements discussed herein are not subject to income, Social…
No Additional Cost Services Exclusion
Course: Income Tax PlanningLesson 6: Employer-Sponsored Total Income Exclusions Student Question: For “No Additional Cost Services” provided by an employer, which are excluded from employee income, there is the requirement that no significant costs are incurred. How is “significant” cost determined? Significant sounds subjective. Is there a general rule for determining what is considered significant?…
Assets in the Gross Estate
Which of the following assets would be included in Martin’s gross estate? Life insurance on Martin’s life purchased one year before he died by the trustee of Martin’s irrevocable life insurance trust. Life insurance on Martin’s life purchased by Martin’s wife two years before he died. Life insurance on Martin’s life purchased three years before…
The Jackie Robinson of Financial Planning
CFP® Certificants in the News In a recent CFP Board press release, Board Chair Kevin Keller announced that, “As we celebrate Black History Month, I want to recognize LeCount Davis, CFP® for his contributions to the financial planning profession. LeCount was the first African American to earn the CFP® certification, and I am not alone in considering…
Prepaid Plan Refunds
Course: Fundamentals of Financial PlanningLesson 6: Educational Savings Techniques Student Question: Good afternoon – What happens if a parent has contributed to a prepaid tuition plan, but the child decides not to attend that school? Also, do contributions pertain to just one school? Or is it any school within that state? Kind regards, Austin Instructor…
Who is an Investment Advisor?
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam, who retired last year from a big brokerage house, but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing Belinda, who writes weekly investment articles for…