Reliable retrieval-augmented generation (RAG) requires recognizing when neither retrieved documents nor parametric knowledge supports an answer. We introduce DeclineCraft, a dynamic abstention benchmark whose unanswerable questions target Minecraft feature additions after a corpus cut-off, with audits of possible parametric exposure. Later cut-offs support evaluation of future models. Across 27 LLMs, we measure Correct Abstention Rate (CAR; how often models acknowledge insufficient knowledge on unanswerable questions), Answerable Attempt Rate and Answer Accuracy. We find that (1) single-shot retrieval significantly raises CAR in 38 of 40 configurations (model and thinking setting) versus no retrieval. (2) Iterative RAG, in which the model self-assesses its context and can request up to two further retrieval rounds, significantly lowers CAR versus single-shot RAG in 30 of 40 configurations (mean 46.4%), with little change in Answer Accuracy (68.5% to 69.3%). Adding query rewriting and reranking to hybrid (dense & sparse) retrieval lowers CAR for all 12 models tested. (3) Larger models answer more accurately (Spearman $ρ= +0.60$ with total parameters), but neither model size nor release date shows a significant association with CAR. (4) Without retrieval, enabling thinking on the same weights lowers CAR significantly for 8 of 13 models (by 14% points on average), and the responses shift from acknowledged uncertainty to premise denial.

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