100+ Free ARA Practice Questions

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Question 1

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A Deferred Income Annuity (DIA) differs from a SPIA primarily because:

A DIA cannot be funded with IRA money

DIA proceeds are tax-free at distribution

A DIA is not regulated by state insurance departments

Payments begin a set number of years after purchase rather than immediately

to track

Same family resources

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2026 Statistics

Key Facts: ARA Exam

100

Exam Questions

ACAT ARA candidate page

3 hours

Exam Time

ACAT ARA candidate page

Passing Score

ACAT

$250

Exam Fee

ACAT register page

Blueprint Tasks

ARA Exam Blueprint (2024)

24 CPE/yr

Maintenance

ACAT (8 elder-care + 2 ethics required)

ARA is a 100-question, 3-hour proctored online exam with a passing score of 70 and a $250 registration fee plus $50 credential activation. The blueprint spans 16 tasks: Social Security, Medicare, Medicaid, veteran and LTC benefits, S/E tax, retirement plans and RMDs, home sale and reverse mortgages, decedent final returns, estates and trusts (Form 1041), gift tax (Form 709), estate tax (Form 706), and ethics for aging clients. Candidates must be 18 or older with no other prerequisites.

Sample ARA Practice Questions

Try these sample questions to test your ARA exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1For workers born in 1960 or later, what is the Social Security Full Retirement Age (FRA)?

A.65

B.66

C.66 and 6 months

D.67

Explanation: Per the Social Security Administration, FRA is age 67 for anyone born in 1960 or later. Workers born 1955-1959 have FRA between 66 and 2 months and 66 and 10 months. Claiming before FRA reduces benefits permanently; delaying past FRA earns delayed retirement credits to age 70.

2A worker born in 1962 claims Social Security at age 62. By approximately what percentage will her primary insurance amount (PIA) be permanently reduced?

A.20%

B.25%

C.30%

D.35%

Explanation: With FRA of 67, claiming at 62 means filing 60 months early. SSA reduces 5/9 of 1% for each of the first 36 months and 5/12 of 1% for each of the additional 24 months, totaling about 30% reduction (20% + 10%). The reduction is permanent and applies to spousal benefits derived from her record.

3How much does a delayed retirement credit add to a Social Security benefit per year for a worker with FRA 67 who delays claiming past FRA?

A.5% per year

B.6% per year

C.8% per year

D.10% per year

Explanation: Delayed retirement credits are 8% per year (2/3 of 1% per month) for workers born 1943 or later. Credits accrue from FRA to age 70, after which no further increase is earned. A worker with FRA 67 delaying to 70 receives a 24% increase above PIA.

4A client claims Social Security at FRA. Up to what age can she earn delayed retirement credits if she later suspends benefits?

A.Age 68

B.Age 69

C.Age 70

D.Age 72

Explanation: Delayed retirement credits stop accruing at age 70 even if benefits are suspended longer. A voluntary suspension between FRA and 70 lets the worker accrue the 8% per year credits, but there is no benefit to suspending past age 70.

5In 2026, a 64-year-old beneficiary collecting Social Security earns $40,000 in wages. Her FRA is 67. Approximately how much of her benefit will be withheld under the earnings test?

A.$0 - the earnings test does not apply before FRA

B.$1 for every $2 earned above the 2026 lower exempt amount of $24,360

C.$1 for every $3 earned above the 2026 higher exempt amount

D.100% of the benefit until she reaches FRA

Explanation: Before FRA the SSA withholds $1 of benefits for every $2 earned over the lower exempt amount, which is $24,360 in 2026. With $40,000 in wages she exceeds the threshold by $15,640, so about $7,820 in benefits will be withheld. Withheld amounts are credited back as higher monthly benefits starting at FRA.

6What is the maximum Social Security spousal benefit a non-working spouse can receive at her own FRA based on her husband's record?

A.25% of the worker's PIA

B.50% of the worker's PIA

C.75% of the worker's PIA

D.100% of the worker's PIA

Explanation: The unreduced spousal benefit is 50% of the worker's PIA at the spouse's FRA. The worker must have filed for benefits before the spouse can claim a spousal benefit (post-2015 rules eliminated 'file and suspend' for new claimants). Claiming spousal benefits before FRA results in permanent reductions.

7A widow's husband died at age 70 while receiving an enhanced Social Security benefit due to delayed credits. What survivor benefit is she entitled to at her own FRA?

A.50% of the deceased worker's enhanced benefit

B.100% of the deceased worker's enhanced benefit including delayed credits

C.100% of the deceased worker's PIA without delayed credits

D.Her own benefit only - widow benefits do not stack

Explanation: A widow(er) is entitled to 100% of the deceased spouse's benefit including any delayed retirement credits the deceased earned, provided she claims at her own FRA. This is the 'widow's bump' that rewards the deceased worker's deferral. Claiming early reduces the survivor benefit (down to a floor at age 60).

8A client divorced after 12 years of marriage and never remarried. Her ex-husband is alive but has not yet filed for Social Security. She is at her FRA. Can she claim a divorced-spouse benefit?

A.No - the ex-husband must file first

B.Yes - if divorced at least 2 years and both are eligible to claim

C.No - divorced-spouse benefits require 20 years of marriage

D.Yes - but only after age 70

Explanation: An independently entitled divorced spouse can claim if the marriage lasted 10+ years, both spouses are at least 62, the divorce has been final at least 2 years, and the claimant has not remarried. The ex-spouse does not need to have filed, unlike a current spouse. Divorced-spouse benefits do not affect the worker's PIA.

9What 2026 Cost-of-Living Adjustment (COLA) was applied to Social Security benefits?

A.1.8%

B.2.5%

C.3.2%

D.5.9%

Explanation: SSA announced a 2.5% COLA for 2026 based on the CPI-W for the third quarter of 2025 compared to 2024. The COLA is applied to all Social Security retirement, disability, and survivor benefits beginning with the January 2026 payment.

10A single retiree has $30,000 of Social Security and $20,000 of other income. How much of her Social Security is potentially taxable?

A.Nothing - she falls below the base thresholds

B.Up to 50% of her benefits

C.Up to 85% of her benefits

D.100% of her benefits

Explanation: Provisional income equals adjusted gross income (excluding SS) plus tax-exempt interest plus half of SS benefits. Here: $20,000 + $15,000 = $35,000, which exceeds the single 85% threshold of $34,000. Therefore up to 85% of her benefits may be taxed. The exact taxable amount uses the Pub 915 worksheet.

About the ARA Exam

The ACAT Accredited Retirement Advisor (ARA) is a 100-question, 3-hour proctored online exam that certifies tax and financial professionals in retirement planning and elder-financial advisory. The blueprint covers Social Security, Medicare, Medicaid, veteran benefits, long-term care, retirement plans and distributions, RMDs, estates and trusts, federal gift and estate tax, and ethics in serving aging clients. As of early 2025 the exam is under revision and ACAT is collecting interest while the relaunch is finalized.

Questions

100 scored questions

Time Limit

3 hours

Passing Score

Exam Fee

$250 (Accreditation Council for Accountancy and Taxation (ACAT))

ARA Exam Content Outline

12%

Social Security

Retirement, disability and survivor benefits, FRA 67 for those born 1960+, early-claim reductions, delayed retirement credits of 8% per year to age 70, earnings test, divorced-spouse and widow(er) rules

12%

Medicare, Medicaid & Veteran Benefits

Parts A/B/C/D, IEP/GEP/SEP, IRMAA 2026 thresholds ($109,000 single / $218,000 joint), Medigap Plan G and Plan N, Medicaid spend-down and 5-year look-back, VA Aid & Attendance

Long-Term Care

Tax-qualified LTC insurance, hybrid life/LTC, partnership policies, IRC 7702B benefits, HSA payment of LTC premiums, Medicare's limited LTC coverage

Self-Employment Tax & Business Entities

Schedule SE mechanics, SEP and solo 401(k) contributions, S-corp reasonable compensation, increasing S/E income to build Social Security PIA

20%

Retirement Plans & Distributions

IRA/Roth/401(k)/403(b)/SEP/SIMPLE limits, 10% premature distribution penalty and exceptions, 72(t) SEPP, 60-day and direct rollovers, RMDs at age 73 (75 in 2033), Uniform Lifetime Table, SECURE 2.0 10-year rule for non-eligible designated beneficiaries

Preserve Residence

IRC 121 home sale exclusion ($250k/$500k), ownership and use tests, HECM reverse mortgages, FHA insurance, non-recourse feature

Decedent's Final Tax Return

Final Form 1040 filing responsibility, joint return with surviving spouse, IRD reporting and 691(c) deduction, medical expense election

12%

Estates, Trusts & Fiduciary Accounting

Wills, revocable and irrevocable trusts, personal representative duties, Form 1041 filing threshold ($600 gross income), DNI, distribution deduction, simple vs complex trusts

Federal Gift & Estate Tax

Form 709 gift returns, 2026 annual exclusion ($19,000), gift-splitting, applicable exclusion and DSUE, Form 706 valuation, alternate valuation date, marital and charitable deductions

Tools of Estate Planning & Ethics

QTIP marital trusts, valuation discounts (lack of marketability and minority interest), FINRA Rule 2165 senior holds, identifying the client, dealing with diminished capacity

How to Pass the ARA Exam

What You Need to Know

Passing score: 70
Exam length: 100 questions
Time limit: 3 hours
Exam fee: $250

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ARA Study Tips from Top Performers

1Memorize the Social Security claiming math: 5/9 of 1% per month for the first 36 months early, 5/12 of 1% beyond that, and 8% per year delayed retirement credit to age 70

2Build a Medicare timeline showing IEP (3 months before through 3 months after 65), GEP (Jan 1 - Mar 31), SEP triggers, and the Part B late-enrollment penalty of 10% per 12 months delayed

3Drill RMD mechanics: age 73 today, age 75 in 2033, Uniform Lifetime Table divisor at 73 is 26.5, joint-and-survivor table only when spouse is sole beneficiary and >10 years younger

4Practice Form 1041 fundamentals: filing threshold of $600 gross income, DNI as the cap on the distribution deduction, simple trusts must distribute all income, and beneficiaries pick up tax via K-1

5Lock down ethics for aging clients: identify who the client is, document concerns about diminished capacity, follow FINRA Rule 2165 for temporary holds, and protect confidentiality even when family members attend meetings

Frequently Asked Questions

What is the format of the ACAT ARA exam?

The ARA is a 100-question multiple-choice exam delivered as a proctored online test through ACAT. Candidates have 3 hours to complete the exam and must score 70 or higher to pass. After registering you have 60 days to schedule and complete the exam.

What topics does the ARA blueprint cover?

The blueprint spans 16 tasks: Social Security, Medicare, Medicaid, veteran benefits, long-term care, self-employment tax, business entities, retirement plans, residence preservation, decedent's final return, estates and trusts, income taxation of estates and trusts, federal gift tax (Form 709), federal estate tax (Form 706), ethics for aging clients, and tools of estate planning.

How much does the ARA exam cost?

The ARA examination fee is $250, paid through the ACAT online portal. After passing, candidates pay an additional $50 credential activation fee. Holders must complete 24 CPE hours per year (including 8 elder-care hours and 2 ethics hours) to maintain the designation.

Are there prerequisites for the ARA?

Candidates must be at least 18 years old, but ACAT does not require any specific education, prior exams, or work experience. The credential is designed for tax preparers, financial planners, CPAs, EAs, and other advisors who serve retiring and elderly clients. Strong tax-prep and financial-planning background is recommended for success.

How long should I study for the ARA?

Most candidates plan 80 to 150 hours of dedicated study over 8 to 16 weeks. The largest study blocks should go to retirement plan distributions (20% of the blueprint) and the combined Social Security, Medicare, Medicaid, and benefits group (about 24%). Estates and trusts and federal tax returns (Forms 1041, 706, 709) round out the heaviest content.

Is the ARA exam currently being offered?

As of January 2025, ACAT announced that the ARA exam is undergoing revisions and would not be administered during the revision window. ACAT is collecting interest from candidates and will notify them when the updated exam and study materials relaunch. Check the ACAT website for the most current status before registering.

What 2026 figures should I memorize for the ARA?

Key 2026 figures include the Social Security 2.8% COLA, FRA of 67 for those born 1960 or later, maximum benefit of $5,251 at age 70, Medicare Part B premium of $202.90, IRMAA starts at $109,000 single / $218,000 joint, RMD age 73 (rising to 75 in 2033), QCD limit $111,000, QLAC limit $210,000, and gift annual exclusion $19,000.