ABA · CISP
Certified IRA Services Professional (CISP) Practice Test
The ABA CISP certification validates expertise in Individual Retirement Accounts (IRAs), covering contributions, distributions, retirement plan portability, employer plans, and IRA investments. It is an industry-recognized credential for banking and financial professionals who manage or advise on IRA services.
Exam Details
Questions
700
Duration
180 minutes
Passing Score
500/800
Difficulty
ProfessionalLast Updated
Mar 2026
Topics Covered
IRA Documentation and Maintenance RequirementsIRA ContributionsRetirement Plan PortabilityIRA DistributionsIRA Fees and InvestmentsRetirement Planning ConsiderationsEmployer Plans – SEP and SIMPLE
Certified IRA Services Professional (CISP) Practice Exam Preparation
Use this CISP practice exam to prepare for Certified IRA Services Professional (CISP) with realistic questions, detailed explanations, and focused study modes. The practice bank includes 700 questions for ABA CISP, so you can review the exam steadily instead of relying on one long cram session.
As you practice, pay extra attention to recurring topics such as IRA Documentation and Maintenance Requirements, IRA Contributions, Retirement Plan Portability, IRA Distributions, and IRA Fees and Investments. Start with short sessions to identify weak areas, then move into timed quizzes once your accuracy is consistent.
The explanations are especially useful when you want to connect exam wording to the responsibilities and scenarios described in the official certification guidance. Use the free preview first, then unlock the full question bank when you are ready to build a complete study routine.
Exam Domain Breakdown
Retirement Plan Portability25%
IRA Distribution Requirements20%
IRA Eligibility and Contribution Requirements15%
Employer Plans – SEP and SIMPLE10%
IRA Documentation and Maintenance Requirements10%
IRA Fees and Investments10%
IRA Estate Planning10%
Exam Overview
The Certified IRA Services Professional (CISP) is an industry-recognized credential administered by the American Bankers Association (ABA) that validates a financial professional's comprehensive knowledge of Individual Retirement Accounts. The certification covers the full spectrum of IRA services, including traditional and Roth IRAs, SEP and SIMPLE employer plans, contribution rules, distribution requirements, retirement plan portability, rollovers, transfers, conversions, and IRA investments. The ABA's CISP designation is federally registered with the United States Patent & Trademark Office, underscoring its standing as a rigorous, nationally recognized standard of competency in IRA services.
The certification is designed for professionals who are responsible for administering, advising on, or managing IRA products and services within banking and financial institutions. It demonstrates mastery of the regulatory environment governing IRAs, including IRS rules on eligibility, tax treatment, withholding, required minimum distributions (RMDs), beneficiary designations, and estate planning considerations. Earning the CISP signals to employers and clients that a professional has met a defined, verifiable benchmark for IRA knowledge and operational competence.
Who Should Take This Exam
The CISP is intended for banking and financial services professionals who work directly with IRA products on a daily or operational basis. Typical candidates include bank trust officers, branch managers, trust administrators, retirement plan specialists, customer service representatives handling IRA accounts, and financial planning advisors who counsel clients on retirement savings strategies.
The credential is particularly valuable for professionals at financial institutions—commercial banks, credit unions, and brokerage firms—who are responsible for IRA account setup, compliance, customer guidance, and plan administration. It is equally relevant for professionals seeking to formalize and demonstrate their expertise as part of career advancement in the retirement services sector.
Prerequisites
To be eligible for the CISP exam, candidates must satisfy both an experience requirement and, in most cases, an educational requirement. The standard path requires a minimum of two years of dedicated IRA operational or technical experience, combined with completion of an ABA-approved educational program such as the ABA IRA Online Institute (offered in conjunction with Ascensus Retirement Services) or the Cannon Financial Institute IRA Professional School. Candidates with four or more years of dedicated IRA experience may qualify without completing an approved educational program.
In addition to experience and education, applicants must submit a professional reference letter and sign an ethics statement as part of the application process. ABA certifications are based on U.S. laws and regulations, so candidates must have U.S.-based IRA experience to satisfy the eligibility requirements. Candidates must pass the exam within three years of their first attempt, and a minimum of 90 days must elapse between exam attempts.
Exam Format
The CISP exam consists of 150 multiple-choice questions and must be completed within a three-hour time limit. Candidates may use calculators provided at the testing facility. The exam is delivered via Meazure Learning's U.S.-based test sites or through their live remote proctoring (LRP) platform, ProctorU, which allows candidates who meet technical requirements to sit for the exam at home or another private location under a live remote proctor. Computer-based exam takers receive their pass/fail result immediately upon completing the test at the testing site.
The exam is scored on a scale, with a passing score of 500 out of 800. Exams are offered in three testing windows per year; candidates must apply by the published deadline for each window. A retake requires a minimum 90-day waiting period from the start of the most recent testing window. To maintain the CISP designation, certified professionals must earn 24 continuing education credits (approximately 20 hours of study) every three years and pay an annual membership fee.
Skills Measured
- 1.Retirement Plan Portability (25%): Covers IRA-to-IRA transfers, direct and indirect rollovers, plan-to-IRA rollovers, Roth conversions, recharacterizations, and the rules governing each type of movement including the one-rollover-per-year rule and withholding requirements.
- 2.IRA Distribution Requirements (20%): Covers distribution taxation and withholding rules, required minimum distribution (RMD) calculations and deadlines, early distribution penalties and exceptions, 72(t) substantially equal periodic payment rules, and reporting obligations.
- 3.IRA Eligibility and Contribution Requirements (15%): Covers contribution eligibility rules for traditional and Roth IRAs, income and age limits, deductibility rules, contribution deadlines, excess contribution identification and correction, and spousal IRA rules.
- 4.Employer Plans – SEP and SIMPLE (10%): Covers Simplified Employee Pension (SEP) plan establishment and contribution rules, SIMPLE IRA plan setup, employer and employee contribution limits, vesting, and the interaction of these plans with individual IRA accounts.
- 5.IRA Documentation and Maintenance Requirements (10%): Covers IRA plan agreement requirements, disclosure statements, beneficiary designation documentation, account maintenance responsibilities, and regulatory recordkeeping obligations for financial institutions.
- 6.IRA Fees and Investments (10%): Covers permissible and prohibited IRA investments, fee structures, trustee and custodian responsibilities, investment reporting, and rules governing alternative investments within IRAs.
- 7.IRA Estate Planning (10%): Covers beneficiary designation strategies, primary and contingent beneficiary rules, spousal and non-spousal inherited IRA distribution options, trust-as-beneficiary considerations, and post-death required minimum distribution rules.
Study Tips
- Complete the ABA IRA Online Institute (offered through Ascensus) before sitting for the exam — the 12-week course directly maps to all seven exam domains and is the primary preparation track recognized by the ABA.
- Use the official ABA sample CISP exam questions, available on the ABA's 'Prepare for the Exam' page, to familiarize yourself with question phrasing and identify weak knowledge areas before test day.
- Prioritize the Retirement Plan Portability domain (25%) and IRA Distribution Requirements domain (20%), as these two sections together account for nearly half the exam — mastery of rollover rules, RMD calculations, and distribution exceptions is essential.
- Study the IRS publications directly relevant to IRAs — particularly IRS Publication 590-A (Contributions to IRAs) and Publication 590-B (Distributions from IRAs) — to ensure your understanding is grounded in current regulatory language.
- Create a comparison reference sheet covering the key numerical thresholds for each IRA type: contribution limits, income phase-out ranges for Roth and deductible traditional IRAs, RMD age triggers, early distribution penalty exceptions, and SEP/SIMPLE contribution percentages.
- Review IRS Form 5498, Form 1099-R, and Form 8606 to understand reporting obligations, as IRA documentation and reporting is a tested domain and questions often reference real-world form scenarios.
- Schedule your exam for a window after completing all coursework and allow at least two to four weeks for review using practice questions; leverage the ABA's published exam content outline to confirm you have covered every tested topic area.
Career Benefits
Earning the CISP designation positions professionals for advancement within the retirement services and banking sectors, where demonstrated IRA expertise is directly tied to client trust and regulatory compliance. Common roles held by CISP holders include IRA specialist, retirement services manager, bank trust officer, branch manager, trust administrator, and financial planning advisor. The credential is recognized by financial institutions across the country as a mark of technical competency, and in many organizations it is tied to role eligibility or compensation increases for IRA-focused positions.
The CISP is particularly valuable in an environment of increasing regulatory complexity around retirement accounts, where institutions face heightened scrutiny over RMD compliance, rollover rules, and beneficiary administration. Professionals who hold the CISP are equipped to reduce institutional risk and provide higher-quality client guidance, making them more competitive candidates for senior IRA or retirement operations roles. The credential complements other financial services designations and is one of the few certifications specifically focused on the operational and regulatory depth of IRA services.
Sample Questions
5 sample questions with answers and explanations. Start a practice session to test yourself across all 700 questions.
Preview — answers shown1. Northwind Financial is processing year-end reporting for a client, Victoria, who holds a self-directed Traditional IRA that invested in a limited partnership generating $3,500 in Unrelated Business Taxable Income during 2025. What reporting obligation does this create? (Select one!)
AThe IRA trust must file Form 990-T and pay tax at trust tax rates on the UBTI exceeding the $1,000 threshold, and the IRA needs its own EIN
BNo reporting is required because Traditional IRAs are tax-exempt entities and all income within the IRA is tax-deferred
CVictoria must report the UBTI on Form 8606 as part of her nondeductible IRA basis tracking
DVictoria must report the $3,500 on her personal Form 1040 as ordinary income from her Traditional IRA
Explanation
Although IRAs are tax-exempt trusts under IRC §408(e)(1), they are subject to Unrelated Business Income Tax when UBTI exceeds the $1,000 threshold. The IRA trust — not Victoria personally — must file Form 990-T and pay tax at trust tax rates on the amount exceeding $1,000. For this filing, the IRA needs its own Employer Identification Number, separate from Victoria's Social Security number. Limited partnerships are a common trigger for UBTI in self-directed IRAs because pass-through income from operating businesses constitutes unrelated business income. The tax is paid from IRA assets, not from Victoria's personal funds. The income is not reported on Victoria's personal Form 1040, and Form 8606 is used for tracking nondeductible IRA contributions and basis, not for UBTI reporting. The common misconception that all income within an IRA is tax-deferred is incorrect when UBTI is involved.
2. Tailspin Trust is advising a client, Howard, age 75, about the consequences of failing to take his Required Minimum Distribution for the current tax year. Howard's RMD for the year is $18,000, and he inadvertently missed the December 31 deadline. Under current law as amended by SECURE 2.0, what penalties does Howard face, and how can he minimize them? (Select one!)
AHoward faces no penalty if he takes the missed RMD by April 15 of the following year, similar to the first-year RMD extension.
BHoward faces a 50% excise tax of $9,000 on the missed RMD amount, with no opportunity for reduction.
CHoward faces a 10% excise tax of $1,800 on the missed RMD amount, with no further reduction available.
DHoward faces a 25% excise tax of $4,500 on the missed RMD amount, which can be reduced to 10% ($1,800) if he corrects the shortfall within the applicable correction window.
Explanation
SECURE 2.0 §302 reduced the excise tax for failure to take RMDs from the previous 50% rate to 25% of the shortfall amount. For Howard's $18,000 missed RMD, the initial penalty is $4,500 (25% of $18,000). However, if Howard corrects the shortfall within the correction window — defined as the end of the second taxable year after the tax is imposed — the penalty is further reduced to 10%, or $1,800. This two-tier penalty structure incentivizes prompt correction of missed RMDs. The April 15 extension to the Required Beginning Date only applies to the first-year RMD and is not a general correction mechanism for missed distributions. Howard should take the missed amount as soon as possible and file Form 5329 to report the excise tax at the reduced rate if corrected timely.
3. Woodgrove Financial is assisting with estate planning for a client, Robert, age 70, who has a Traditional IRA valued at $800,000. Robert wants to name a trust as the sole beneficiary of his IRA to protect the assets from his beneficiaries' creditors. The trust names Robert's two adult children, ages 42 and 38, as current beneficiaries, and a local charity as the remainder beneficiary. What distribution rule will apply to the trust after Robert's death? (Select one!)
AThe 5-year rule because the trust has a non-individual remainder beneficiary (the charity), which causes the trust to fail see-through treatment
BThe 10-year rule with annual RMDs in years 1 through 9 because the trust qualifies as a see-through trust and the children are non-eligible designated beneficiaries
CThe 10-year rule with no annual RMDs because trusts are always treated as non-designated beneficiaries regardless of their terms
DLife expectancy distributions based on the oldest child's age because the trust qualifies as a conduit trust and the charity remainder beneficiary is disregarded
Explanation
For a trust to qualify as a see-through (look-through) trust, all beneficiaries must be identifiable individuals. In an accumulation trust where the trustee has discretion to retain distributions, all potential beneficiaries — including remainder beneficiaries — are counted for classification purposes. Because the local charity is a remainder beneficiary and is a non-individual entity, the trust fails see-through treatment entirely. When a trust fails see-through status, it is treated as a non-designated beneficiary, resulting in the 5-year rule if the owner dies before the required beginning date, or the ghost life expectancy method if the owner dies on or after the RBD. If Robert had structured the trust as a conduit trust, only the current income beneficiaries (the children) would be counted, but the question describes discretionary (accumulation) trust provisions. The 10-year rule only applies to designated beneficiaries.
4. Contoso Retirement is advising a client, Frank, age 63, who wants to perform a backdoor Roth IRA conversion. Frank has the following IRA balances as of December 31, 2025: a Traditional IRA with $180,000 (all pre-tax), a SEP IRA with $120,000 (all pre-tax), and a Roth IRA with $50,000. Frank wants to make a $7,000 nondeductible Traditional IRA contribution and immediately convert it to a Roth IRA. How much of the $7,000 conversion will be taxable? (Select one!)
A$0, because Frank is converting only the nondeductible after-tax contribution
B$5,852, because only the Traditional IRA balance is used in the pro-rata calculation
C$7,000, because the entire conversion is taxable when pre-tax IRA balances exist
D$6,838, because the pro-rata rule requires aggregation of all Traditional, SEP, and SIMPLE IRA balances
Explanation
The pro-rata rule under IRC Section 408(d)(2) requires aggregating all Traditional, SEP, and SIMPLE IRA balances when determining the taxable portion of a conversion. Frank's total pre-tax IRA balance is $180,000 (Traditional) + $120,000 (SEP) = $300,000. After adding the $7,000 nondeductible contribution, his total IRA balance is $307,000, of which $300,000 is pre-tax and $7,000 is after-tax. The taxable percentage is $300,000 / $307,000 = approximately 97.7%. Therefore, approximately $6,838 of the $7,000 conversion is taxable ($7,000 × 97.7%). The Roth IRA balance of $50,000 is excluded from this calculation — Roth IRAs and inherited IRAs are not included in the pro-rata aggregation. Frank cannot cherry-pick only the after-tax dollars for conversion. A common strategy to avoid this result would be to roll the pre-tax Traditional and SEP IRA balances into an employer 401(k) plan before year-end, leaving only the $7,000 after-tax basis for a clean conversion.
5. Contoso Retirement Services receives a call from a client, Evelyn, age 62, who wants to understand her options for a self-directed Traditional IRA. Evelyn is considering purchasing a rental property and having her son, who is a licensed contractor, perform renovations on the property using IRA funds to pay him. Evelyn's son would charge fair market value for his services. What should Contoso advise Evelyn regarding this arrangement? (Select one!)
AThe arrangement is permitted only if Evelyn's son is not a 10% or more shareholder in any entity owned by the IRA.
BThe arrangement is permitted because her son would charge fair market value for his services, which satisfies the arm's-length transaction requirement.
CThe arrangement constitutes a prohibited transaction under IRC Section 4975 because her son is a lineal descendant and therefore a disqualified person, regardless of the price charged.
DThe arrangement is permitted because contractor services are an exempt transaction under the goods and services exemption of IRC Section 4975(d).
Explanation
Under IRC Section 4975, a lineal descendant (son) is a disqualified person with respect to the IRA owner's account. Any furnishing of goods, services, or facilities between an IRA and a disqualified person constitutes a prohibited transaction regardless of whether the transaction occurs at fair market value. The fair market value of the services is irrelevant because the prohibition is categorical. The goods and services exemption under Section 4975(d) applies to services necessary for plan establishment or operation (such as legal or accounting services for the plan itself), not to services related to IRA-owned investment property. The consequence of this prohibited transaction would be the loss of the IRA's tax-exempt status, with the entire account treated as distributed on January 1 of the violation year.
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