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

The method of payment under an IRA that is likely to provide higher periodic payment amounts is fixed annuitization with high interest assumptions.

This option involves converting the IRA assets into an annuity, which guarantees a series of payments over a specified period, usually for the lifetime of the annuitant. When high interest rate assumptions are utilized in the annuity calculations, the amount of periodic payments is significantly increased, as the payments are calculated based on the expected returns on the invested principal. Higher interest rates mean that the annuity can draw from larger earnings, allowing for greater periodic distributions to the annuitant.

Choosing fixed annuitization also typically provides stability in payment amounts and predictable income, which can be critical for retirement planning. The other options present various limitations or considerations that generally lead to lower periodic payment amounts when compared to this method. For example, longer life expectancy with low interest rates results in lower periodic payments since the calculations factor a longer payout period without sufficient earnings. Required minimum distribution approaches are also calculated based on account balance relative to life expectancy which often results in lower distributions, especially as account balances decline. One-time immediate distributions may provide a lump sum but not a higher periodic income stream.

Thus, fixed annuitization coupled with high