Podcast
Questions and Answers
If an individual's earned income is $60,000, what is their annual RRSP contribution limit?
If an individual's earned income is $60,000, what is their annual RRSP contribution limit?
- $20,000
- $27,830
- $12,000
- $10,800 (correct)
What is the consequence of over-contributing more than $2,000 to an RRSP?
What is the consequence of over-contributing more than $2,000 to an RRSP?
- Tax credit for the over-contribution
- Penalty tax of 1% per month on the excess (correct)
- Immediate tax deduction
- No consequence
When can an individual no longer carry forward their unused RRSP contribution room?
When can an individual no longer carry forward their unused RRSP contribution room?
- End of the year after turning 65
- End of the year after turning 71 (correct)
- End of the year after turning 75
- End of the year after turning 70
What is a way to avoid the penalty tax for over-contributing to an RRSP?
What is a way to avoid the penalty tax for over-contributing to an RRSP?
What is the penalty tax rate for over-contributions to an RRSP above $2,000?
What is the penalty tax rate for over-contributions to an RRSP above $2,000?
What is the maximum RRSP contribution limit for the year in question for Janice?
What is the maximum RRSP contribution limit for the year in question for Janice?
How is the RRSP contribution limit calculated for Janice?
How is the RRSP contribution limit calculated for Janice?
Why are adjustments made to the RRSP contribution limit for participants in RPPs or DPSPs?
Why are adjustments made to the RRSP contribution limit for participants in RPPs or DPSPs?
How do RRSP contributions affect the income tax deductions for individuals?
How do RRSP contributions affect the income tax deductions for individuals?
What is one of the benefits of contributing to an RRSP?
What is one of the benefits of contributing to an RRSP?
What is the deadline for contributing to a spousal plan after an individual turns 71 years of age?
What is the deadline for contributing to a spousal plan after an individual turns 71 years of age?
How are in-kind contributions valued when contributing to an RRSP?
How are in-kind contributions valued when contributing to an RRSP?
If an individual contributes in-kind assets with a market value that exceeds the purchase price, what must be reported on their tax return?
If an individual contributes in-kind assets with a market value that exceeds the purchase price, what must be reported on their tax return?
What is the purpose of calculating an individual's annual RRSP contribution limit?
What is the purpose of calculating an individual's annual RRSP contribution limit?
How is the annual RRSP contribution limit calculated for an individual?
How is the annual RRSP contribution limit calculated for an individual?
What is the formula for calculating the annual RRSP contribution limit?
What is the formula for calculating the annual RRSP contribution limit?
Which of the following is NOT included in earned income for calculating RRSP contribution room?
Which of the following is NOT included in earned income for calculating RRSP contribution room?
What component adjusts the RRSP contribution limit for participants in Registered Pension Plans?
What component adjusts the RRSP contribution limit for participants in Registered Pension Plans?
In the context of RRSP contributions, what is the purpose of the Notice of Assessment (NOA) provided by the Canada Revenue Agency?
In the context of RRSP contributions, what is the purpose of the Notice of Assessment (NOA) provided by the Canada Revenue Agency?
How does the Canada Revenue Agency calculate RRSP contribution room if an individual has unused RRSP deduction room?
How does the Canada Revenue Agency calculate RRSP contribution room if an individual has unused RRSP deduction room?
If Jon and Craig each contribute $13,800 annually to their RRSPs, what will be the difference in their managed RRSP savings after 30 years?
If Jon and Craig each contribute $13,800 annually to their RRSPs, what will be the difference in their managed RRSP savings after 30 years?
Under current RRSP legislation, who will have to make larger minimum withdrawals in the future between Jon and Craig?
Under current RRSP legislation, who will have to make larger minimum withdrawals in the future between Jon and Craig?
What is the maximum RRSP contribution limit for Craig based on the information provided?
What is the maximum RRSP contribution limit for Craig based on the information provided?
How much can Jon contribute annually to his RRSP based on his earned income from last year?
How much can Jon contribute annually to his RRSP based on his earned income from last year?
What strategy can Jon and Craig use to accumulate a similar total in their managed RRSP accounts?
What strategy can Jon and Craig use to accumulate a similar total in their managed RRSP accounts?
What is the benefit of carrying forward RRSP deductions for an individual expecting a significant increase in income?
What is the benefit of carrying forward RRSP deductions for an individual expecting a significant increase in income?
How does contributing to an RRSP help with tax deferral on investment growth?
How does contributing to an RRSP help with tax deferral on investment growth?
How does the ability to apply RRSP contributions to the previous year benefit taxpayers?
How does the ability to apply RRSP contributions to the previous year benefit taxpayers?
What is the impact of not deducting RRSP contributions from total income in the current year?
What is the impact of not deducting RRSP contributions from total income in the current year?
Which statement accurately describes the tax implications of withdrawing money from an RRSP?
Which statement accurately describes the tax implications of withdrawing money from an RRSP?
If Jon and Craig decide to split their RRSP contributions equally, how much will Jon contribute to a spousal RRSP annually?
If Jon and Craig decide to split their RRSP contributions equally, how much will Jon contribute to a spousal RRSP annually?
In Canada's progressive tax system, why would a couple earning $50,000 each pay less tax than one person earning $100,000 and the other earning $0?
In Canada's progressive tax system, why would a couple earning $50,000 each pay less tax than one person earning $100,000 and the other earning $0?
What is the benefit of contributing to a spousal RRSP in the context of Jon and Craig's situation?
What is the benefit of contributing to a spousal RRSP in the context of Jon and Craig's situation?
If Jon and Craig both earn $60,000 annually, what is a potential strategy they could use to maximize their RRSP contributions and tax benefits?
If Jon and Craig both earn $60,000 annually, what is a potential strategy they could use to maximize their RRSP contributions and tax benefits?
How does contributing to a spousal RRSP impact the retirement savings of the contributor and the annuitant?
How does contributing to a spousal RRSP impact the retirement savings of the contributor and the annuitant?
What is a key advantage of contributing to managed RRSPs rather than spousal RRSPs?
What is a key advantage of contributing to managed RRSPs rather than spousal RRSPs?
What is the primary reason for Jon to continue contributing $4,000 to a managed RRSP instead of allocating it towards a spousal RRSP?
What is the primary reason for Jon to continue contributing $4,000 to a managed RRSP instead of allocating it towards a spousal RRSP?
What is the major consideration for an individual over 71 contributing to a spousal RRSP?
What is the major consideration for an individual over 71 contributing to a spousal RRSP?
What is the primary advantage of splitting contributions between managed and spousal RRSPs instead of allocating all funds to one account?
What is the primary advantage of splitting contributions between managed and spousal RRSPs instead of allocating all funds to one account?
How does contributing to an RRSP impact pension adjustments for individuals like Jon and Craig?
How does contributing to an RRSP impact pension adjustments for individuals like Jon and Craig?
