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100+ Free HS 326 Practice Questions

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2026 Statistics

Key Facts: HS 326 Exam

$24,500

2026 401(k) Deferral Limit

IRS Notice 2025-67

$72,000

2026 415(c) DC Limit

IRS Notice 2025-67

$290,000

2026 Max Defined Benefit

IRS Notice 2025-67

Age 73

RMD Beginning Age

IRS / SECURE 2.0

$184,500

2026 Social Security Wage Base

Social Security Administration

100

Free Practice Questions

OpenExamPrep

HS 326 Planning for Retirement Needs is a multiple-choice, online proctored course final exam from The American College, required in both the ChFC and CFP education programs. It tests qualified plans, IRAs, SEP and SIMPLE plans, 403(b) and 457 plans, nonqualified deferred compensation, distribution and required minimum distribution rules, and Social Security. Key 2026 figures include a $24,500 elective deferral limit, $72,000 415(c) annual additions, $290,000 maximum defined benefit, $7,500 IRA limit, RMD age 73, and a $184,500 Social Security wage base. The American College does not publish a fixed question count, pass rate, or raw passing percentage.

Sample HS 326 Practice Questions

Try these sample questions to test your HS 326 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In a retirement income needs analysis, a planner reduces the client's pre-retirement gross income to estimate retirement spending. What is the primary rationale for using a wage replacement ratio below 100%?
A.Inflation is expected to be zero during retirement
B.Certain expenses such as payroll taxes, retirement-plan savings, and work-related costs typically cease or decline in retirement
C.Social Security replaces 100% of pre-retirement income for most workers
D.Required minimum distributions automatically cover all retirement spending
Explanation: A replacement ratio (commonly 70-80%) reflects that some pre-retirement expenses disappear or shrink after retirement, including FICA payroll taxes on earned income, ongoing retirement-plan contributions, and commuting or work-clothing costs. The client no longer needs to save for retirement once retired.
2A defined benefit plan promises a fixed monthly benefit at retirement. Which party bears the primary investment risk in a traditional defined benefit pension plan?
A.The plan participant
B.The plan participant's beneficiary
C.The IRS
D.The employer (plan sponsor)
Explanation: In a defined benefit plan the employer guarantees a specified benefit formula, so the employer must fund the promised benefit regardless of investment performance. If plan assets underperform, the employer must contribute more; the participant's benefit is fixed by the formula.
3For 2026, what is the elective deferral limit under IRC Section 402(g) for employee salary deferrals into a 401(k) plan (excluding catch-up contributions)?
A.$23,000
B.$23,500
C.$72,000
D.$24,500
Explanation: The 2026 elective deferral (402(g)) limit for 401(k), 403(b), and most 457(b) plans is $24,500, up from $23,500 in 2025. This applies to pre-tax and Roth elective deferrals combined, before any age-based catch-up contributions.
4A 55-year-old participant wants to maximize 2026 elective deferrals to her employer's 401(k) plan. Including the standard age-50 catch-up, what is her maximum elective deferral for 2026?
A.$24,500
B.$32,500
C.$30,000
D.$35,750
Explanation: The 2026 elective deferral limit is $24,500 and the age-50 catch-up is $8,000, totaling $32,500. The enhanced $11,250 catch-up applies only to participants who attain ages 60 through 63 during the year, which does not apply to a 55-year-old.
5Under SECURE 2.0, beginning in 2026, which participants must make their age-50 catch-up contributions on a Roth (after-tax) basis?
A.Participants whose prior-year FICA wages from that employer exceeded $145,000 (indexed; $150,000 for 2025 wages)
B.All participants regardless of income
C.Only participants under age 60
D.Only participants in governmental 457(b) plans
Explanation: SECURE 2.0 requires that catch-up contributions be made on a Roth basis for participants whose prior-year FICA wages from the employer exceeded an indexed threshold ($150,000 for 2025 wages affecting 2026 catch-ups). Lower earners may still choose pre-tax catch-ups.
6What is the 2026 overall limit on annual additions to a participant's account in a defined contribution plan under IRC Section 415(c)?
A.$69,000
B.$70,000
C.$72,000
D.$290,000
Explanation: For 2026 the 415(c) annual additions limit (employer contributions plus employee deferrals plus forfeitures) is the lesser of $72,000 or 100% of compensation. This was $70,000 in 2025. Age-based catch-up contributions are on top of this limit.
7For 2026, what is the maximum annual benefit payable from a defined benefit plan under IRC Section 415(b)?
A.$290,000
B.$245,000
C.$280,000
D.$72,000
Explanation: The 2026 maximum annual benefit under a defined benefit plan (415(b)) is the lesser of $290,000 or 100% of the participant's average compensation for the highest three consecutive years. This increased from $280,000 in 2025.
8A closely held business with stable, predictable cash flow and an older owner who wants to maximize tax-deductible contributions for himself would most likely benefit from which type of plan?
A.A SIMPLE IRA
B.A SEP limited to 10% of compensation
C.A traditional defined benefit (or cash balance) plan
D.A Roth IRA only
Explanation: Defined benefit and cash balance plans allow the largest deductible contributions for older owners because contributions are actuarially determined to fund a substantial benefit over a short time horizon. Stable cash flow supports the required annual funding obligation.
9Which vesting schedule is the maximum permitted graded vesting schedule for employer matching and other contributions under current law for most qualified defined contribution plans?
A.3-year cliff vesting
B.5-to-15-year graded vesting
C.2-to-6-year graded vesting
D.10-year cliff vesting
Explanation: For employer contributions, the maximum graded schedule is 2-to-6-year graded (20% after 2 years, increasing 20% per year to 100% after 6 years). The alternative is 3-year cliff vesting. These accelerated schedules replaced the older 5-to-15-year rules.
10For 2026, an employee is generally considered a highly compensated employee (HCE) for nondiscrimination testing if their prior-year compensation exceeded what threshold (absent the top-paid group election)?
A.$135,000
B.$155,000
C.$235,000
D.$160,000
Explanation: The HCE compensation threshold under IRC 414(q) is $160,000 for 2026 (based on prior-year pay), unchanged from 2025. An employee is also an HCE if they are a more-than-5% owner regardless of compensation.

About the HS 326 Exam

HS 326 Planning for Retirement Needs is a required course in The American College ChFC and CFP education programs. It covers retirement planning for individuals and business owners, qualified plans (defined benefit, defined contribution, 401(k), profit-sharing, money purchase, cash balance), plan qualification and nondiscrimination rules, IRAs, SEP and SIMPLE plans, 403(b) and 457 plans, nonqualified deferred compensation, distributions and RMDs, and Social Security integration.

Assessment

Question count not published by the exam provider

Time Limit

Timed online proctored final exam set by The American College

Passing Score

The American College sets the HS 326 passing standard; no fixed public raw percentage is published

Exam Fee

No separate sit-fee; the proctored final exam is included in The American College ChFC or CFP education program tuition (The American College of Financial Services)

HS 326 Exam Content Outline

12%

Retirement Income Needs Analysis

Wage replacement ratios, inflation, longevity risk, sequence-of-returns risk, safe withdrawal guidelines, capital preservation versus depletion, and tax-efficient withdrawal sequencing.

24%

Qualified Retirement Plans

Defined benefit, money purchase, profit-sharing, 401(k), cash balance, stock bonus, and ESOP plans, including benefit formulas, safe harbor designs, PBGC, and employer-securities rules.

16%

Plan Qualification Rules

Eligibility, coverage, vesting, nondiscrimination and ADP/ACP testing, top-heavy rules, HCE and key-employee thresholds, 415 and 401(a)(17) limits, ERISA fiduciary duties, and anti-alienation.

12%

IRAs and Employer IRAs

Traditional and Roth IRAs, deductibility and income limits, SEP and SIMPLE IRAs, Roth conversions, the pro-rata rule, and backdoor Roth strategies with 2026 contribution limits.

10%

403(b) and 457 Plans

Eligible employers, funding vehicles, the 403(b) 15-year rule, governmental versus nongovernmental 457(b) plans, the 457 three-year catch-up, and deferral aggregation rules.

8%

Nonqualified Deferred Compensation

Top-hat plans, SERPs, rabbi and secular trusts, corporate-owned life insurance funding, Section 409A timing rules, and employer deduction timing.

10%

Plan Selection for Businesses

Matching plan design to closely held business goals: SEP, SIMPLE, solo 401(k), cross-tested and safe harbor 401(k), cash balance, 412(e)(3), ESOP, and startup tax credits.

8%

Distributions and RMDs

Required minimum distributions, the age-73 rule, the 10-year inherited-account rule, early-distribution exceptions, NUA, QCDs, QLACs, rollovers, plan loans, and QDROs.

How to Pass the HS 326 Exam

What You Need to Know

  • Passing score: The American College sets the HS 326 passing standard; no fixed public raw percentage is published
  • Assessment: Question count not published by the exam provider
  • Time limit: Timed online proctored final exam set by The American College
  • Exam fee: No separate sit-fee; the proctored final exam is included in The American College ChFC or CFP education program tuition

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

HS 326 Study Tips from Top Performers

1Memorize the current-year IRS limits (402(g), 415(c), 415(b), IRA, SIMPLE, HCE, key-employee, and the Social Security wage base) because exam questions hinge on exact 2026 figures.
2Build a side-by-side chart of plan types (DB, money purchase, profit-sharing, 401(k), cash balance, ESOP, SEP, SIMPLE, 403(b), 457) showing funding, limits, and distribution rules.
3Practice distinguishing pension plans from profit-sharing-type plans, especially on mandatory funding, in-service distributions, and the 10% employer-securities cap.
4Drill RMD mechanics, the age-73 rule, the 10-year inherited-account rule, and eligible designated beneficiaries until they are automatic.
5Learn the nonqualified deferred compensation framework: top-hat status, 409A timing, rabbi versus secular trusts, and employer deduction timing.
6Connect Social Security rules (full retirement age 67, delayed credits, the earnings test, taxation of benefits) to retirement income needs analysis.

Frequently Asked Questions

What is HS 326 Planning for Retirement Needs?

HS 326 is a required course and final exam in The American College ChFC program, and it also satisfies a CFP education requirement. It covers retirement planning for individuals and business owners, qualified plans, IRAs, 403(b) and 457 plans, nonqualified deferred compensation, distributions, and Social Security.

How many questions are on the HS 326 exam?

The American College administers HS 326 as a multiple-choice online proctored final exam but does not publish a fixed public question count. This free practice bank provides 100 MCQ-format questions aligned to the course's content domains for knowledge preparation.

What is the passing score for HS 326?

The American College sets the passing standard for the HS 326 final exam and does not publish a fixed public raw passing percentage. Candidates should aim for consistent mastery across all course topics rather than targeting a specific percentage.

What are the 2026 retirement contribution limits tested in HS 326?

Key 2026 figures include a $24,500 401(k) elective deferral limit, $72,000 415(c) annual additions limit, $290,000 maximum defined benefit, $7,500 IRA limit, $17,000 SIMPLE IRA limit, and a $184,500 Social Security wage base. The RMD beginning age is 73.

Does HS 326 count toward the CFP certification?

Yes. HS 326 Planning for Retirement Needs is part of both The American College ChFC curriculum and its CFP Certification Education Program, so the course can satisfy the retirement-planning education requirement on the path to CFP certification.

At what age do required minimum distributions begin under the rules tested in HS 326?

Under SECURE 2.0, required minimum distributions generally begin at age 73 for individuals reaching that age in 2023 through 2032, rising to age 75 starting in 2033. Roth IRAs have no lifetime RMDs for the original owner.

Is the HS 326 exam open book?

HS 326 is administered as a closed-book, timed, online proctored final exam through The American College learning platform. Candidates must complete it under proctoring with government-issued identification.

How long should I study for HS 326?

Candidates commonly report 50 or more hours of study for a single American College course such as HS 326. Most learners spread preparation over 6 to 10 weeks alongside the course materials before sitting the final exam.