Registered Accounts

Question 1

What are Non-arm length entities and where can they be held?

Answer 1

Company in which you or related persons collectively own 10% or more.
Cannot be held in registered accounts

Question 2

Becoming a non-resident with TFSA?

Answer 2

Retain TFSA contribution room and tax free withdrawals.
BUT no contribution room accumulates
May be foreign tax

Question 3

Uncommon RESP strategy

Answer 3

Make a initial lump sum contribution (or more) which does not receive matching grant.
* 14 K will not be matched (36K gives max lifetime CESG) but future contributions will receive 20% match

Contributions can be withdrawn tax free.

Question 4

Individual RESP Beneficiary

Answer 4

Can be anyone
* unlike F-RESP, no relation needed

Question 5

RESP Timeframe?

Max cont?

Answer 5

Contributions for 31 years from plan inception
Must be wrapped up at year 35

50000
Grant of 7200 is paid on 36000 contribution

Question 6

Attribution timeline on S-RSP?

Answer 6

2 calendar years after year of contribution

Question 7

Max 2024 RSP contribution room?

Answer 7

Lesser of 18% of 2023 income or 31,560

Question 8

Strategy for lost RSP contribution room with spouse at 71+?

Answer 8

Contribute to a spousal RSP and claim the deduction, if earned income in previous year/carry over rsp room.

Question 9

RDSP Lifetime Max contribution?

Answer 9

200K

Question 10

RRSP to RDSP?

Answer 10

Can be transferred tax-free on death to financial dependent infirm child or grand child (if they have contribution room)

Question 11

Max CDSG? CDSB?

Answer 11

G: 3500 annually (10,500 with carry over) and 70K lifetime.

B: 1000 per year (11K carryover); 20K lifetime

Question 12

RDSP Timeline

Answer 12

Contributions until 59

Bond and grant until 49

Min withdrawals by 60

10 year clawback on grant and bond.

Question 13

Are RSPs generally protected from creditors?

Answer 13

No

Question 14

How are transfers into RSPs taxed? TFSAs?

Answer 14

Capital gains triggered, cannot claim capital losses (same for TFSA).

Question 15

RIF Minimum calculation?

Answer 15

1 / (90-Age) x value of RIF.

Question 16

When are assets in RSPs credtor proof?

Answer 16

Contributions made in before preceding 12 months;
at death, if a beneficiary is named

Question 17

Qualifying investments for RSP?

Answer 17

Any security listed on a designated exchange (except futures contracts)
* Bankers acceptances
* Royal units/credit union shares
* Gold and Silver

Question 18

Are locked in accounts protected from creditors?

Answer 18

Yes, in all cases.

Question 19

How is earned income (for RSP purposes) calculated?

Answer 19

Net income from employment, business (not LPs) and rentals
* deduct union dues, loses from biz or rental

Question 20

For RSPs, does Canadian earned income for non-residents count toward earned income?

Answer 20

Yes; just must be paying taxes in Canada

Question 21

Min age for RSPs?

Answer 21

There is none.

Question 22

Attribution for spousal RIF?

Answer 22

Min can be withdrawn without attribution
* if excess withdrawn, and contributions made in current or preceding 2 years, then attribution to contributing spouse.

Question 23

CIDC coverage for RSPs? TFSAs?

Answer 23

100k (considered separate from other funds, e.g., non-reg)

Question 24

Requirement to gain TFSA cont room?

Answer 24

18+ & a resident of Canada

Question 25

Can a spouse roll their late spouses TFSA FMV into their own without using cont room, if the beneficiary is the estate?

Answer 25

YES!

Question 26

Benefits of IPP?

Answer 26

High contribution rates than RRSP
* offers defined, guaranteed income level (unlike DCPP)
* employer covers any shortfall, not the employee
*offers ability to index retirement income (which DCPP do not)