Core Curriculum Chapter 13

Question 1

REGISTERED INVESTMENTS - What are the three main tax benefits of registered plans?

Answer 1

Tax-deferred accumulation, tax-deductible contributions, and tax-free accumulation.

Question 2

RRSP CONTRIBUTIONS - How is RRSP room calculated?

Answer 2

18% of earned income, subject to an annual maximum limit.

Question 3

RRIF - What happens to an RRSP at age 71?

Answer 3

It must be converted to a Registered Retirement Income Fund (RRIF) or an annuity.

Question 4

HOME BUYERS’ PLAN (HBP) - How much can be withdrawn?

Answer 4

Up to $35,000, repayable over 15 years.

Question 5

LIFELONG LEARNING PLAN (LLP) - What is the withdrawal limit?

Answer 5

Up to $20,000, repayable over 10 years.

Question 6

TFSA - How does it differ from an RRSP?

Answer 6

Contributions are not tax-deductible, but growth and withdrawals are tax-free.

Question 7

REGISTERED PENSION PLANS (RPPs) - What are the two main types?

Answer 7

Defined Benefit (DB) and Defined Contribution (DC) plans.

Question 8

RDSP - Who benefits from a Registered Disability Savings Plan?

Answer 8

Individuals with disabilities, benefiting from Canada Disability Savings Grants (CDSG).