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

The statement about contributions to Roth IRAs stopping by age 70½ is not true. Unlike traditional IRAs, which impose contribution limits tied to age, Roth IRAs allow individuals to continue contributing regardless of their age as long as they have earned income and meet the required income limits. This feature is particularly beneficial for retirees who may wish to keep funding their Roth IRA to maximize tax-free growth and withdrawals later on.

In contrast, the other statements accurately represent key characteristics of Roth IRAs. Contributions can indeed be made at any age, provided the individual has earned income and stays within the designated income thresholds. Withdrawals of contributions are tax-free because contributions to a Roth IRA are made with after-tax dollars, meaning that the basis is not taxed upon withdrawal. Additionally, investment earnings grow tax-free within the account, providing a tax advantage that can enhance the overall growth of the retirement savings.