Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 - Free CRPC Practice Questions and Study Guide

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Question: 1 / 660

Which of the following statements about rollovers is false?

Funds can lose potential forward averaging benefits

Must be transferred to a new account within 60 days

Noncash assets can be rolled over

They generally increase retirement savings

The correct statement is that rollovers generally increase retirement savings. When an individual rolls over their retirement account, such as moving funds from a 401(k) to an IRA, they often do so to take advantage of better investment options, lower fees, or more favorable terms. This transfer can lead to better growth potential for their retirement savings over time.

In contrast, the other statements outline potential limitations or nuances associated with rollovers. For example, rolling over funds within a specific time frame is essential to avoid tax consequences. Noncash assets can indeed be rolled over, although the process might involve a bit more complexity. Forward averaging benefits can potentially be lost if funds are not transferred carefully. Understanding these nuances is important in the broader context of retirement planning, but rollovers fundamentally aim to increase and optimize retirement savings.

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