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

The correct statement regarding total distributions for employees born before 1936 is that they can choose to roll over the distribution to an IRA. This ability provides significant tax advantages, as rolling over distributions into an Individual Retirement Account (IRA) allows individuals to defer income taxes on the rolled-over amount. This means the money can continue to grow tax-deferred and not incur immediate tax liabilities, which is especially beneficial for retirement planning.

For employees born before 1936, the option to roll over distributions was available as part of legislative changes that encouraged saving for retirement. Rolling over allows for greater financial flexibility and the potential for increased savings in retirement.

The other statements do not accurately reflect the options available to these employees at the time. For instance, limitations such as a specific capital gains rate, a cap on the percentage of rollover, or mandates on distribution methods were not consistent with the regulations regarding rollover contributions and distributions applicable to employees born before 1936.