Locked In Retirement Vehicles And Others Flashcards
What is an arrangement that can be made by a qualified person for the purpose of funding funeral or cemetery service
Eligible funeral arrangements
What registered investment account is similar to an eligible funeral arrangements
TFSA
Maximum to contribute for funeral services
$15k
Maximum to contribute for cemetery services
$20k
Maximum to contribute to both funeral and cemetery service
$35k
What investment is not allowed in LIRA
Futures
What investment is considered non-qualifying in LIRA
OTC
CANSIM rate
Monthly average yield on government of Canada marketable 10 year bonds
Used to calculate LIF maximum
Can a successor annuitant be named on LIF
No, only RIF
If you hold non qualified investments
Taxed at 50% MV, when acquired
Refundable if disposed of before the end of the calendar year after the year the tax was assessed, unless intend was suspected
If left in account, all income is taxable
Prohibited investment are non arms length, tax implications 3
50% tax
Tax may be refundable like non qualifying
All income and capital gain taxed at 100%
Requirements for financial hardship unlocking
Income below 66.6% of YMPE
- depending on province can unlock 0 - 50% of YMPE
4 situations that fall under financial hardship
Low income - 66.6% YMPE
foreclosure
Eviction arrears
High medical or disability related costs, can be used once a year
Federal maximum limits are set as follows
CANSIM rate for first 15 years
6% for years remaining, to the end of the year in which the fund, account holder or account holders survivor reaches 90
Provincial maximum calculation
If CANSIM rate falls below 6%
Maximum will be calculated based on 6% minimum rate
