37 Questions
What is the primary focus of Unit 9 in the Canadian Investment Funds Course?
Retirement savings planning
How long does it take to complete Unit 9 of the Canadian Investment Funds Course?
1 hour and 45 minutes
Which lesson in Unit 9 focuses on the different types of government and employer plans?
Lesson 1: Government and Employer Plans
What is the key feature of Registered Retirement Savings Plans (RRSPs) discussed in Unit 9?
Contribution limits
Which type of account is discussed in Lesson 4 of Unit 9?
Locked-In Accounts
What is one of the main responsibilities of a Dealing Representative according to the text?
Understanding retirement savings planning
In which lesson of Unit 9 do you become familiar with the rules surrounding contribution limits?
Lesson 2: Registered Retirement Savings Plans (RRSPs)
What is the approximate duration to complete Lesson 1 in Unit 9?
~45 minutes
At what age does normal retirement under the CPP/QPP begin?
65
What is the maximum employee/employer contribution towards CPP?
$2,898.00 each
What percentage reduction in CPP amounts is applied if an individual starts collecting their pension at the age of 62?
21.6%
What is the monthly pension amount Bill will receive if he qualifies for full CPP and decides to retire early?
$1,048.84
What happens to the CPP/QPP pension benefit if an individual chooses to start collecting before age 65?
It decreases
What is the reduction percentage applied to CPP amounts if pension starts at age 64?
7.2%
What are the ages between which an individual can choose to collect CPP/QPP retirement pension benefits?
60 and 70
How is the maximum employee/employer contribution towards CPP calculated?
(YMPE - $3,500) x 5.25%
What is the maximum annual RRSP contribution limit for Mario based on the information provided?
$9,000
Up to what amount can an individual over-contribute to their RRSP without being subject to a penalty tax?
$2,000
Until what age can an individual carry forward unused RRSP contribution room?
71
What is the penalty tax rate for over-contributions to an RRSP above $2,000?
1%
How is the maximum annual RRSP contribution limit determined?
By changes in the average industrial wage
What happens if an individual over-contributes to their RRSP by $2,500?
They incur a penalty tax of 2%
When must any RRSP withdrawals be reported as income on an individual’s tax return?
Regardless of the amount
When does the repayment period for an LLP withdrawal begin?
Within 10 years of the withdrawal
How many calendar years can LLP withdrawals take place over?
4 years
When should the first repayment after an LLP withdrawal be made?
60 days after the end of the fifth year following the first withdrawal year
What happens if annual repayments after an LLP withdrawal are missed or incomplete?
They are included in income and subject to tax
What must be done to maintain the tax-free status of withdrawals from the RRSP?
Repay the withdrawals into the RRSP account within 10 years
How are LLP repayment installments calculated?
$10,000 divided by 10 years
Keith decides not to make any repayments toward his LLP withdrawal. What will be the tax implications?
$10,000 added to his income and subject to tax
What is the main purpose of LRSPs and LIRAs according to the text?
To provide employees with income at retirement
By what age must individuals convert their LRSP or LIRA?
71
What happens if an individual transfers their LRSP or LIRA funds to a Life Income Fund (LIF)?
Withdrawals are subject to a maximum limit per year
Which option allows individuals to withdraw the entire account balance at any time?
Transfer to a Prescribed Retirement Income Fund (PRIF)
What is the difference between LRSPs and LIRAs according to the text?
LRSPs allow unlimited withdrawals, LIRAs have restrictions
What provision does the PRIF option have that the other options do not?
Allows unlimited annual withdrawals
What must individuals primarily consider when choosing among the four LRSP or LIRA options?
Maximum withdrawal limits
Test your knowledge about retirement savings planning, public and private retirement savings plans, Registered Retirement Savings Plans (RRSPs), and contribution limits. This quiz covers content from a course on Canadian investment funds.
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