Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 - Free CRPC Practice Questions and Study Guide

Jan Allen must start taking distributions from her profit-sharing account by April 1 of the year following her retirement. This requirement is based on IRS regulations regarding retirement accounts, including profit-sharing plans, which stipulate that participants must begin withdrawing funds once they retire or reach a certain age.

If Jan retires before the age of 70, the deadline for starting distributions is defined as April 1 of the year following her retirement. This rule ensures that individuals do not postpone taking distributions indefinitely, allowing the IRS to collect tax revenue from these funds.

The other options do not accurately reflect the IRS requirements for profit-sharing accounts. For instance, starting distributions as late as six months after turning 70 does not align with IRS regulations, nor does the end of her retirement year provide a clear guideline established under the relevant tax laws. Thus, the correct understanding is tied directly to the April 1 deadline following her retirement.