Retirement

Question 1

OAS eligibility

Answer 1

A.1. - resident in Cda for at least 40 years after age 18
&
Resident in Cda for an uninterrupted 10 years immediately preceding application for OAS

A. 2. If not loved in Cda for at least 10 years, still qualify:
a) lived in Cda for a full year immediately before applying for OAS
AND
b) lived/present in Cda for at least 3 years for each year of absence during that 10 year period

Question 2

OAS CLAWBACK

Answer 2

= 15% of (net annual income - threshold amount)

For the tax year of 2022, the Old Age Security clawback begins when you earn $81,761 or above; this is called the minimum income recovery threshold. There is also a maximum income recovery threshold, which, for 2022, is $134,626 for people aged 65-74 and $137,331 for people aged 75-plus.

Question 3

RRSP CONTRIBUTIONS LIMIT?

Answer 3

Lesser of:
A) 18% of previous year’s earned income
B) dollar limit for the year

From lesser of the two above:
1) deduct pension adjustments (PA) and Past Service Pension Adjustments (PSPA)
2) Add tax payer’s unused contri room.

Question 4

Calculate minimum withdrawal from RRIF?

Answer 4

= 1/(90-age) * RRIF BALANCE

Question 5

Which has a minimum and maximum withdrawal limit?
A. RRIF
B. LIF

Answer 5

B. LIF

Question 6

What is the penalty on excess contribution in TFSA?

Answer 6

1% of excess contributions each month