Canadian Investment Funds Course Unit 9: Retirement Introduction Quiz
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Questions and Answers

What is the primary focus of Unit 9 in the Canadian Investment Funds Course?

  • Tax planning for individuals
  • Retirement savings planning (correct)
  • Investment strategies for young professionals
  • Estate planning for high net worth clients

    • How long does it take to complete Unit 9 of the Canadian Investment Funds Course?

  • 3 hours
  • 2 hours and 30 minutes
  • 1 hour and 45 minutes (correct)
  • 45 minutes

    • Which lesson in Unit 9 focuses on the different types of government and employer plans?

  • Lesson 4: Locked-In Accounts
  • Lesson 1: Government and Employer Plans (correct)
  • Lesson 3: Withdrawing from RRSPs
  • Lesson 2: Registered Retirement Savings Plans (RRSPs)

    • What is the key feature of Registered Retirement Savings Plans (RRSPs) discussed in Unit 9?

    <p>Contribution limits</p> Signup and view all the answers

    Which type of account is discussed in Lesson 4 of Unit 9?

    <p>Locked-In Accounts</p> Signup and view all the answers

    What is one of the main responsibilities of a Dealing Representative according to the text?

    <p>Understanding retirement savings planning</p> Signup and view all the answers

    In which lesson of Unit 9 do you become familiar with the rules surrounding contribution limits?

    <p>Lesson 2: Registered Retirement Savings Plans (RRSPs)</p> Signup and view all the answers

    What is the approximate duration to complete Lesson 1 in Unit 9?

    <p>~45 minutes</p> Signup and view all the answers

    At what age does normal retirement under the CPP/QPP begin?

    <p>65</p> Signup and view all the answers

    What is the maximum employee/employer contribution towards CPP?

    <p>$2,898.00 each</p> Signup and view all the answers

    What percentage reduction in CPP amounts is applied if an individual starts collecting their pension at the age of 62?

    <p>21.6%</p> Signup and view all the answers

    What is the monthly pension amount Bill will receive if he qualifies for full CPP and decides to retire early?

    <p>$1,048.84</p> Signup and view all the answers

    What happens to the CPP/QPP pension benefit if an individual chooses to start collecting before age 65?

    <p>It decreases</p> Signup and view all the answers

    What is the reduction percentage applied to CPP amounts if pension starts at age 64?

    <p>7.2%</p> Signup and view all the answers

    What are the ages between which an individual can choose to collect CPP/QPP retirement pension benefits?

    <p>60 and 70</p> Signup and view all the answers

    How is the maximum employee/employer contribution towards CPP calculated?

    <p>(YMPE - $3,500) x 5.25%</p> Signup and view all the answers

    What is the maximum annual RRSP contribution limit for Mario based on the information provided?

    <p>$9,000</p> Signup and view all the answers

    Up to what amount can an individual over-contribute to their RRSP without being subject to a penalty tax?

    <p>$2,000</p> Signup and view all the answers

    Until what age can an individual carry forward unused RRSP contribution room?

    <p>71</p> Signup and view all the answers

    What is the penalty tax rate for over-contributions to an RRSP above $2,000?

    <p>1%</p> Signup and view all the answers

    How is the maximum annual RRSP contribution limit determined?

    <p>By changes in the average industrial wage</p> Signup and view all the answers

    What happens if an individual over-contributes to their RRSP by $2,500?

    <p>They incur a penalty tax of 2%</p> Signup and view all the answers

    When must any RRSP withdrawals be reported as income on an individual’s tax return?

    <p>Regardless of the amount</p> Signup and view all the answers

    When does the repayment period for an LLP withdrawal begin?

    <p>Within 10 years of the withdrawal</p> Signup and view all the answers

    How many calendar years can LLP withdrawals take place over?

    <p>4 years</p> Signup and view all the answers

    When should the first repayment after an LLP withdrawal be made?

    <p>60 days after the end of the fifth year following the first withdrawal year</p> Signup and view all the answers

    What happens if annual repayments after an LLP withdrawal are missed or incomplete?

    <p>They are included in income and subject to tax</p> Signup and view all the answers

    What must be done to maintain the tax-free status of withdrawals from the RRSP?

    <p>Repay the withdrawals into the RRSP account within 10 years</p> Signup and view all the answers

    How are LLP repayment installments calculated?

    <p>$10,000 divided by 10 years</p> Signup and view all the answers

    Keith decides not to make any repayments toward his LLP withdrawal. What will be the tax implications?

    <p>$10,000 added to his income and subject to tax</p> Signup and view all the answers

    What is the main purpose of LRSPs and LIRAs according to the text?

    <p>To provide employees with income at retirement</p> Signup and view all the answers

    By what age must individuals convert their LRSP or LIRA?

    <p>71</p> Signup and view all the answers

    What happens if an individual transfers their LRSP or LIRA funds to a Life Income Fund (LIF)?

    <p>Withdrawals are subject to a maximum limit per year</p> Signup and view all the answers

    Which option allows individuals to withdraw the entire account balance at any time?

    <p>Transfer to a Prescribed Retirement Income Fund (PRIF)</p> Signup and view all the answers

    What is the difference between LRSPs and LIRAs according to the text?

    <p>LRSPs allow unlimited withdrawals, LIRAs have restrictions</p> Signup and view all the answers

    What provision does the PRIF option have that the other options do not?

    <p>Allows unlimited annual withdrawals</p> Signup and view all the answers

    What must individuals primarily consider when choosing among the four LRSP or LIRA options?

    <p>Maximum withdrawal limits</p> Signup and view all the answers

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