RRSP And Other Registered Plans Flashcards
How do you calculate RRSP Room?
18% of net income
- employment benefits(not EI)
- taxable support benefits
- net business Income
- CPP-D
Who can you name as beneficiary on an RrSp?
Anyone
On who can you use a rollover?
1) spouse or common law
2) child with disability
3) dependent child (adult or minor)
What happens when an annuitant dies and has a spouse ?
- RRSP is disposed
- but they get an offsetting deduction based on survivor’s contribution
What happens when a RRIF has a successor annuitant?
-surviving spouse just picks up the account and assumes their minimums
How’s does a rollover happen when it’s going to an adult dependent?
- Dependent needs to earn less than basic amount
- taxed in child’s hands
What happens when the RRSP is rolled over to a minor dependent?
- minor needs to earn less than basic amount
- child can take full amount and pay tax
- have term certain annuity between now and 19th bday and taxed are spread out
What happens when you rollover to disabled child?
- Must earn less than basic amount plus DTC
- can roll into RRSP but disability support may be compromised
- can roll into RDSP up to 200k and not over 59
How is us equity dividends taxed in an rrsp?
The 15% withholding tax doesn’t apply in an RRSP or RRIF
How do you calculate a pension adjustment for a DB plan?
(Benefit x 9) - 600
How do you calculate a RRIF min?
FMV of account/(90-age)
How are RRIF mins taxed if converted from a spousal RRIF?
Don’t have to attribute tax on min
What happens to the RRSP if someone becomes a non resident?
- no disposition
- no tax on growth
- 25% withholding on withdrawals
What happens to a TFSA when someone becomes a non resident?
No disposition-
No tax on growth
No tax on withdrawals
1% tax on new contributions
What happens to an RESP when someone becomes a non resident?
No disposition
No tax on growth
Taxed in beneficiaries hands on withdrawals
