PracticeVideosBlogFlashcards
All Practice Exams

Free Practice Questions for CISP

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More ABA Banking Certifications

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

CTFA Certified Trust and Fiduciary Advisor

Practice Questions200 questionsStudy Guide27 topicsBlogs1 blogFree CE

CRCM Certified Regulatory Compliance Manager

Practice Questions210 questionsStudy Guide116 topicsFree CE

CERP Certified Enterprise Risk Professional

Practice Questions200 questionsFree CE

CFMP Certified Financial Marketing Professional

Practice Questions200 questionsFree CE

ABA Certified AML and Fraud Professional (CAFP)

Practice Questions100 questionsFree CE

Certified Lender Business Banker (CLBB, ABA)

Practice Questions100 questionsFree CE

More From This Family

Videos and articles for deeper review.

ArticleCTFA Certified Trust and Fiduciary Advisor Exam Guide 20266 min read
Exam Review

Key Facts: CISP Exam

150 Qs

Question Count

ABA CISP exam information

3 hrs

Time Limit

ABA CISP exam information

500 / 800

Passing Score (200-800 scale)

ABA CISP exam information

$600

Exam Fee

ABA CISP exam information

Mar 1-31, 2027

Next Testing Window

ABA CISP application calendar

7 Domains

Blueprint Areas

ABA CISP content outline

ABA's CISP Exam Content Outline has seven weighted domains: IRA Documentation and Maintenance Requirements (13%), IRA Contributions (16%), Retirement Plan Portability (20%), IRA Distributions (20%), Retirement Planning Considerations (11%), IRA Fees and Investments (10%), and Employer Plans – SEP and SIMPLE (10%). The exam has 150 multiple-choice questions, a 3-hour maximum, and a scaled passing score of 500 on a 200-800 scale. Candidates need two years of dedicated IRA experience plus an ABA-listed IRA program, or four years of dedicated IRA experience.

Sample CISP Practice Questions

Try these sample questions to review concepts for the CISP exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A bank uses Form 5305-A to open a new Traditional IRA for a customer. What type of account does this IRS model agreement create?
A.A Traditional IRA custodial account
B.A Traditional IRA trust account
C.A Roth IRA custodial account
D.A SIMPLE IRA established by the employer
Explanation: Form 5305-A is the IRS model custodial account agreement for a Traditional IRA. Form 5305 is the trust version of the same agreement. Using the model form means the bank does not need a private letter ruling on the document.
2Which IRS model form does a bank use to open a Roth IRA structured as a trust account?
A.Form 5305
B.Form 5305-R
C.Form 5305-RA
D.Form 5305-SA
Explanation: Form 5305-R is the IRS model trust agreement for a Roth IRA. Banks that prefer to act as custodian rather than trustee use Form 5305-RA, the custodial Roth equivalent.
3An employer wants to adopt a SEP using a designated financial institution model. Which IRS form does the employer use to establish the plan?
A.Form 5305-SIMPLE
B.Form 5305-SEP
C.Form 5305-SA
D.Form 5304-SIMPLE
Explanation: Form 5305-SEP is the IRS model SEP plan adoption agreement that an employer signs to create a Simplified Employee Pension. Each participating employee then has an underlying Traditional IRA established with Form 5305 or 5305-A.
4A new IRA owner wants the bank to act as trustee with full investment discretion using a customized non-model document. What disclosure timing rule applies?
A.The bank must give the disclosure statement at least 7 days before account opening or refund all contributions on request within the 7-day revocation period
B.The bank may deliver the disclosure statement up to 30 days after the first contribution
C.The bank does not have to deliver a disclosure statement when using a customized document
D.The disclosure statement is required only for Roth IRAs
Explanation: Treasury Regulation 1.408-6 requires a disclosure statement and a 7-day revocation period. The owner can revoke the account during that period and receive a full refund of contributions without adjustment for fees or losses.
5An IRA owner names her three adult children as primary beneficiaries with no specified percentages. The plan document is silent on how to split the account. How should the bank pay the proceeds at death?
A.Equally among the three children
B.To the oldest child first
C.To the children's mother as default
D.To the IRA owner's estate
Explanation: When primary beneficiaries are named without percentages and the plan document is silent, the standard industry default and the typical model document language is to divide the account in equal shares per stirpes among the named primary beneficiaries.
6An IRA owner divorces and forgets to update her beneficiary form, which still names her ex-spouse. She dies with no contingent beneficiary listed. Under the typical IRA plan document, who receives the IRA?
A.The ex-spouse, because the beneficiary designation controls the IRA
B.The owner's estate by default
C.The owner's children, who become beneficiaries by operation of law
D.The Department of Labor as escheat agent
Explanation: Unlike employer plans governed by ERISA, IRAs follow the named beneficiary on the bank's records. State revocation-on-divorce statutes generally do not automatically remove the ex-spouse from a federally regulated IRA either, so the ex-spouse takes the account.
7A bank wants to amend its customized IRA plan agreement to incorporate SECURE 2.0 changes. What must the bank do for existing IRA owners?
A.Provide an amended plan document or summary of amendments to each existing IRA owner
B.Close and reopen each IRA under the new document
C.Notify only owners who are currently taking RMDs
D.No action is required because amendments take effect automatically
Explanation: When a financial institution amends its IRA agreement, it must give existing account owners an amended plan document or a written summary of the changes. This preserves the contractual notice required by Treasury Regulation 1.408-6.
8A customer wants to fund a Traditional IRA with appreciated stock she already owns in her individual brokerage account. What does IRC Section 408 allow?
A.Annual IRA contributions must be made in cash; in-kind property contributions are not permitted except for rollovers
B.She may contribute the stock at fair market value and use the gain as a deductible contribution
C.She may contribute the stock and the basis becomes the IRA contribution amount
D.She may contribute up to $7,000 of stock per year as long as she also contributes $1,000 in cash
Explanation: Section 408(a)(1) requires regular IRA contributions to be made in cash. The only time in-kind property is allowed is when it represents a rollover of the same property received from another retirement account.
9A bank IRA administrator notices that an IRA application is missing a Social Security number. What is the appropriate next step?
A.Hold the application and request the missing TIN before opening the account
B.Open the account and report the missing TIN later on Form 5498
C.Open the account using the customer's date of birth as a substitute
D.Open the account and apply 24% backup withholding to all future activity
Explanation: A valid TIN is required to establish the IRA so the bank can satisfy IRS reporting on Forms 5498 and 1099-R. Best practice and bank policy is to hold the application until the customer supplies the missing TIN.
10A 47-year-old single individual has $90,000 of taxable compensation in 2025. Assuming no other limits apply, what is the maximum regular Traditional IRA contribution she can make for 2025?
A.$7,000
B.$8,000
C.$6,500
D.$23,000
Explanation: The 2025 regular IRA contribution limit is $7,000 for individuals under age 50. The additional $1,000 catch-up only applies to individuals age 50 or older, so this 47-year-old is capped at $7,000.

About the CISP Exam

The CISP is ABA's professional certification for bank IRA administrators who establish and service Traditional, Roth, SEP, SIMPLE, Inherited, and Coverdell ESA accounts. The exam measures whether candidates can apply current Internal Revenue Code rules and SECURE Act 1.0 and 2.0 changes to documentation, contribution and distribution processing, RMD calculation, beneficiary payouts, employer plan rollovers, and IRS reporting on Forms 5498, 1099-R, 5329, and 8606.

Exam sponsor: American Bankers Association (ABA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

150 multiple-choice questions with a maximum of 3 hours; ABA embeds a few unscored pilot items for statistical research

Time Limit

3 hours

Passing Score

500 (scaled score 200-800)

Exam / Certification Fees

$600 ($350 retake fee)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

13%

IRA Documentation and Maintenance Requirements

Plan establishment and maintenance; IRA disclosure statements, notices, and delivery methods; beneficiary designation; and reporting with its associated penalties.

16%

IRA Contributions

Contribution eligibility, limits, and deadlines; deductibility and other tax issues; and excess contribution rules and penalties.

20%

Retirement Plan Portability

Transfers, rollovers, conversions, recharacterizations, and other transactions such as repayments and recontributions.

20%

IRA Distributions

Taxation and withholding rules, required minimum distributions, beneficiary distribution rules, and penalties and penalty exceptions.

11%

Retirement Planning Considerations

Beneficiary selection, trusts as beneficiaries, and the estate and income taxation of IRAs.

10%

IRA Fees and Investments

Prohibited transactions, prohibited investments, and prohibited transaction exemptions; fees and disclosure rules; nontraditional investment issues; and account valuation requirements.

10%

Employer Plans – SEP and SIMPLE

Eligibility, employer tax benefits, plan establishment and maintenance, contributions, portability, and distributions.

Preparing for the CISP Exam

What You Need to Know

  • Passing score: 500 (scaled score 200-800)
  • Assessment: 150 multiple-choice questions with a maximum of 3 hours; ABA embeds a few unscored pilot items for statistical research
  • Time limit: 3 hours
  • Exam / certification fees: $600 ($350 retake fee) Official sources

Using Our Practice Resources

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

CISP: Suggested Study Strategy

1Treat the IRS model forms (5305, 5305-A, 5305-R, 5305-RA, 5305-SA, 5305-SEP, 5305-SIMPLE) as a one-page cheat sheet; many CISP questions hinge on knowing which model agreement governs which account type.
2Drill the Section 72(t) exceptions to the 10% premature distribution penalty until they are reflexive, including the SECURE 2.0 additions for federally declared disasters, domestic abuse, terminal illness, and the $1,000 emergency expense distribution.
3Practice RMD calculation using the Uniform Lifetime Table on the prior-year December 31 balance, and know when to switch to the Joint Life and Last Survivor Table for a spouse beneficiary more than ten years younger.
4Build a chart that distinguishes eligible designated beneficiaries from non-eligible designated beneficiaries under SECURE 1.0 and the 2024 final inherited-IRA regulations, including the year-1-through-9 annual RMD requirement when the owner died after the required beginning date.
5Memorize the differences between recharacterization of regular contributions, which is still allowed, and recharacterization of conversions, which the Tax Cuts and Jobs Act repealed for tax years after 2017.

Frequently Asked Questions

What are the eligibility requirements for the CISP exam?

ABA offers two pathways: at least two years of dedicated IRA operational or technical experience plus completion of one listed program (the Ascensus IRA Institute, the ABA IRA Online Institute with Ascensus, the Cannon Financial Institute IRA Professional School, The Entrust Trust Company IRA Academy, or the Ruiz Consulting IRA College), or at least four years of dedicated IRA experience. The experience must be U.S.-based, and every applicant signs the ABA Professional Certifications Code of Ethics statement.

How many questions are on the CISP exam and how long is the testing session?

The CISP exam contains 150 multiple-choice questions and candidates have a 3-hour testing window. ABA scores the exam on a scaled range from 200 to 800 with a passing score of 500. ABA reserves the right to embed unscored pilot items used for statistical research.

When is the next CISP testing window and when is the application deadline?

ABA's next CISP window is March 1-31, 2027, with applications due January 8, 2027. Later published windows are May 15-June 15, 2027 (due March 16, 2027), September 15-October 15, 2027 (due July 19, 2027), and December 1-18, 2027 (due October 4, 2027). ABA notes that the February/March exam covers law and limits in effect through December 31 of the prior year. Approved candidates schedule a test-site or live remote proctored appointment through Meazure Learning.

How does the SECURE 2.0 Roth catch-up rule affect 2026 IRA processing?

Beginning in 2026, employees age 50 or older in 401(k), 403(b), and governmental 457(b) plans whose prior-year FICA wages from the plan sponsor exceeded the indexed threshold ($150,000 for 2026 catch-ups, based on 2025 wages) must make catch-up contributions as designated Roth contributions. IRS Notice 2025-67 confirms that SEP and SIMPLE IRA plans are excluded, and IRA catch-up contributions are not affected. CISP candidates should understand the rule mainly when Roth plan money later rolls into a Roth IRA.

How did the SECURE Act change required minimum distribution rules?

SECURE 1.0 raised the required beginning age from 70 1/2 to 72, and SECURE 2.0 raised it again to 73 starting in 2023 and to 75 beginning in 2033. SECURE 1.0 also replaced lifetime stretch distributions with a 10-year payout for most non-spouse beneficiaries, and the 2024 Treasury final regulations confirmed that beneficiaries of owners who died after the required beginning date must continue annual RMDs in years 1 through 9 in addition to the year-10 cleanout.

Which IRS forms does a CISP-certified administrator most often handle?

Form 5498 reports IRA contributions, rollovers, conversions, fair-market value, and RMD status to the IRS and account owner. Form 1099-R reports distributions with the correct distribution code. Form 5329 calculates additional taxes such as the 10% early-distribution penalty and the 25% RMD-shortfall excise tax that SECURE 2.0 reduced from 50%. Form 8606 tracks nondeductible IRA basis and Roth conversions.