Certified IRA Services Professional (CISP) Practice Exam

The Certified IRA Services Professional (CISP) designation signifies expertise in individual retirement accounts (IRAs). This valuable credential, offered by the American Bankers Association (ABA), empowers individuals to confidently advise clients, support IRA operations, and navigate the complex regulatory landscape surrounding these retirement savings vehicles.

Who should consider the CISP Exam?

This certification caters to a diverse group of professionals seeking to:

• Enhance their career in the financial services industry: Bank trust officers, financial advisors, wealth managers, and retirement specialists can demonstrate their specialized IRA knowledge.
• Build trust with clients: Clients seeking guidance on IRA contributions, distributions, rollovers, and other intricacies will appreciate your expertise.
• Stay ahead of regulatory changes: The CISP curriculum ensures you understand the latest IRA regulations and compliance requirements.
• Prepare for further specialization: This certification lays the groundwork for pursuing advanced designations in retirement planning.

Responsibilities of a CISP Professional

• Advising clients on IRA options: Guide clients in selecting the most suitable IRA type based on their individual goals and circumstances.
• Processing IRA transactions: Accurately and efficiently handle IRA contributions, distributions, rollovers, and other transactions.
• Ensuring compliance: Stay abreast of evolving IRA regulations and implement best practices to mitigate risks and ensure client protection.
• Collaborating with stakeholders: Work effectively with attorneys, accountants, and other professionals involved in client retirement planning.
• Providing ongoing support: Educate clients on IRA rules and answer their questions throughout their retirement journey.

CISP Exam eligibility

Candidates must complete the following: Two years of dedicated IRA operational and technical experience, and the completion of one of the following ICB approved educational programs: Ascensus IRA Institute. ABA IRA Online Institute—In conjunction with Ascensus Retirement Services, American Bankers Association (ABA)

Exam Details 

• Format: 100 multiple-choice questions
• Time Limit: 3 hours
• Passing Score: 75%
  
• Exam Dates: Offered year-round through approved testing providers

Course Outline 

1. Employer Plans - SEP and SIMPLE (10%)

• Eligibility
• Contributions
• Portability
• Distributions
• Reporting
• Plan establishment and maintenance
• Employer tax benefits

2. IRA Documentation and Maintenance Requirements (10%)

• Plan establishment and maintenance
• IRA disclosure statements and notices
• Beneficiary designation
• Electronic documentation
• Reporting and associated penalties

3. IRA Contributions (15%)

• Contribution eligibility
• Deductibility and other tax issues
• Excess contributions rules and penalties

4. Retirement Plan Portability (25%)

• Transfers
• Rollovers
• Conversions
• Recharacterizations

5. IRA Distributions (20%)

• A. General taxation and withholding rules
• B. Required Minimum Distributions (RMD)
• C. Beneficiary distribution rules
• D. Penalties and penalty exceptions

6. IRA Fees and Investments (10%)

• Prohibited transactions and prohibited investments
• Fees and disclosure rules
• Nontraditional investment issues
•  Account valuation requirements

7. Retirement Planning Considerations (10%)

• Beneficiary selection
• Trusts as beneficiaries
• Estate and income taxation