Chapter 6 Flashcards
1
Q
Defined Contribution Pension Plan Calculation
A
Yearly income x 18% = A
A - Employer Contribution = Answer
2
Q
LIF
A
Life Income Fund
A termination option available to holders of a locked-in RRSP
3
Q
RRSP
A
Registered Retirement Saving Plan
Available to individuals to defer tax and save for retirement years.
- may contribute up to 18% of the pervious years earned income
- may contribute up to $2000 over without penalty
4
Q
Annual Earned Pension Calculation
A
Average salary before deductions x define pension benefit % x how many years in a career average pension plan = Answer
