Podcast
Questions and Answers
What is a key characteristic of a Registered Retirement Savings Plan (RRSP) in terms of contributions?
What is a key characteristic of a Registered Retirement Savings Plan (RRSP) in terms of contributions?
- Contributions can only be made by the employer
- Contributions are not deductible for tax purposes
- Contributions are tax-deductible within Income Tax Act limits (correct)
- Contributions are tax-exempt at the time of withdrawal
What happens to investment earnings in a Registered Retirement Savings Plan (RRSP)?
What happens to investment earnings in a Registered Retirement Savings Plan (RRSP)?
- Investment earnings are tax-sheltered (correct)
- Investment earnings are taxed annually
- Investment earnings are taxed at a reduced rate
- Investment earnings are exempt from taxation
In a Group RRSP, what is the main advantage of having centralized administration?
In a Group RRSP, what is the main advantage of having centralized administration?
- Employer contributions are considered additional employee earnings (correct)
- Individuals have less control over their investments
- It requires higher contribution amounts from employees
- Employees can opt out of contributing if they choose
What is the purpose of a 'spousal' account in a Group RRSP?
What is the purpose of a 'spousal' account in a Group RRSP?
What distinguishes Spousal RRSP withdrawals from regular RRSP withdrawals?
What distinguishes Spousal RRSP withdrawals from regular RRSP withdrawals?
At what age must an individual purchase an annuity or transfer their RRSP to a RRIF?
At what age must an individual purchase an annuity or transfer their RRSP to a RRIF?
What is the main purpose of a spousal RRSP?
What is the main purpose of a spousal RRSP?
In the context of RRSP contribution limits, how are historical contributions taken into account?
In the context of RRSP contribution limits, how are historical contributions taken into account?
What are some examples of 'earned income' as defined by the Income Tax Act for RRSP purposes?
What are some examples of 'earned income' as defined by the Income Tax Act for RRSP purposes?
What additional costs might a plan sponsor experience in relation to contributions to a Group RRSP under the ITA?
What additional costs might a plan sponsor experience in relation to contributions to a Group RRSP under the ITA?
What is the maximum amount a plan sponsor can contribute to a DPSP in respect of a plan member?
What is the maximum amount a plan sponsor can contribute to a DPSP in respect of a plan member?
What is the tax implication of withdrawing funds from a Group RRSP or DPSP before retirement?
What is the tax implication of withdrawing funds from a Group RRSP or DPSP before retirement?
Which retirement income option allows a member to defer income from an RRSP portion to age 85?
Which retirement income option allows a member to defer income from an RRSP portion to age 85?
What feature of a Group RRSP makes it advantageous for employees compared to an individual RRSP?
What feature of a Group RRSP makes it advantageous for employees compared to an individual RRSP?
In the context of retirement income options, what is a key difference between a Life Income Fund (LIF) and a Registered Retirement Income Fund (RRIF)?
In the context of retirement income options, what is a key difference between a Life Income Fund (LIF) and a Registered Retirement Income Fund (RRIF)?
What is a significant advantage of a Group RRSP and DPSP combination for employers compared to a DC registered pension plan?
What is a significant advantage of a Group RRSP and DPSP combination for employers compared to a DC registered pension plan?
Why might an employer choose to contribute to a DPSP instead of a Group RRSP?
Why might an employer choose to contribute to a DPSP instead of a Group RRSP?
What is the main factor determining how plan sponsors set contribution amounts to Group RRSPs and DPSPs?
What is the main factor determining how plan sponsors set contribution amounts to Group RRSPs and DPSPs?
What is a potential advantage of a DPSP compared to a Group RRSP for employees?
What is a potential advantage of a DPSP compared to a Group RRSP for employees?
What happens to forfeited amounts in a DPSP if an employee leaves before the vesting period is complete?
What happens to forfeited amounts in a DPSP if an employee leaves before the vesting period is complete?
How does a DPSP incentivize employees to contribute to increasing company profits?
How does a DPSP incentivize employees to contribute to increasing company profits?
What is one way in which a DPSP differs from a DC registered pension plan in terms of accessibility of funds?
What is one way in which a DPSP differs from a DC registered pension plan in terms of accessibility of funds?
What is a key aspect of the fiduciary responsibility of a plan sponsor of a Group RRSP or a DPSP?
What is a key aspect of the fiduciary responsibility of a plan sponsor of a Group RRSP or a DPSP?
In what way are Group RRSP/DPSP with multiple investment choices affected by the Capital Accumulation Plan Guidelines?
In what way are Group RRSP/DPSP with multiple investment choices affected by the Capital Accumulation Plan Guidelines?
What is one reason an employer might choose to contribute to a DPSP instead of a Group RRSP?
What is one reason an employer might choose to contribute to a DPSP instead of a Group RRSP?
Contributions to DPSP are not tax deductible.
Contributions to DPSP are not tax deductible.
Vesting in a DPSP can only take up to 1 year.
Vesting in a DPSP can only take up to 1 year.
In a DPSP, in-service withdrawals are always allowed.
In a DPSP, in-service withdrawals are always allowed.
Employees have no incentive to increase company profits with DPSP.
Employees have no incentive to increase company profits with DPSP.
Contributions to DPSP are always required, even in non-profitable years.
Contributions to DPSP are always required, even in non-profitable years.
Funds in a DPSP are less accessible at termination compared to a DC registered pension plan.
Funds in a DPSP are less accessible at termination compared to a DC registered pension plan.
Non-locked-in payments are allowed in a DPSP.
Non-locked-in payments are allowed in a DPSP.
Plan sponsors of non-registered retirement plans have no fiduciary responsibilities.
Plan sponsors of non-registered retirement plans have no fiduciary responsibilities.
In a Group RRSP/DPSP, participant benefits are not tied to fund manager performance.
In a Group RRSP/DPSP, participant benefits are not tied to fund manager performance.
Group RRSP/DPSP with multiple investment choice options are not subject to Capital Accumulation Plan Guidelines.
Group RRSP/DPSP with multiple investment choice options are not subject to Capital Accumulation Plan Guidelines.
