RRSP Basics
What must you have in order to open a RRSP?
A SIN and taxable income
What is the benefit of a Spousal RRSP?
The spouse who earns a higher income can put funds into a Spousal RRSP to get a tax deduction. While the other spouse gets the benefit of having the funds for their retirement.
When is the last day to make a contribution to a RRSP for it to qualify for the 2020 tax year?
March 1 2021
What are the 4 options within Coastal that RRSP plans can be opened?
CCCU banking floor
My Coastal Retirement
Credential
Q-trade
What is the fee for a RRSP loan?
There is no fee!
What is the maximum contribution you may deduct for an individual year?
18% of your earned income
If you have a Spousal RRSP can you have a Regular RRSP?
Yes!
When are you able to print contribution receipts?
1) At the same time the contribution is made for the first 2 month of the new year
2) Reprinting a contribution receipt
Who qualifies for the First-Time Home Buyers Plan?
For people who have not owned a home and/or lived in it as a principal place of residence in the 4 previous years
Who can qualify for a RRSP quick loan?
Only available for members 19 years of age or older
Who is eligible to contribute to a RRSP?
Anyone with "earned income" subject to Canadian Taxation - including non-residents
Can you contribute to a Spousal plan if the contributor is 71?
Yes, you can contribute to until the end of the calendar year in which your spouse turns 71
Why would someone want a RSP loan?
So they can lower their taxes or just to be able to contribute more to their retirement.
What type of RSP can the loan be contributed to?
Regular RRSP plans at CCCU
RRSP with Credential
RRSP in myCoastal Retirement plan
When is the first payment due on a RRSP loan?
Maximum 45 days from the disbursement - unless deferring 1st payment then can be up to 90 days from disbursement date.
Who can be a beneficiary?
Anyone
Withdrawing from a Spousal plan, what is the "3 Year Attribution rule"?
Contributions to a Spousal cannot be taken out for at least 3 years after the date they were put in. If the funds are taken out within 3 years, the money becomes taxable income for the contributing spouse.
When can you convert your RRSP to RRIF?
At any time you may convert to a RRIF, but you are required to do so in the calendar year you turn 71
What is a Lifelong Learning Plan?
It is a plan that allows the individuals to withdrawal funds from their RRSP to finance their education or their spouses.
Withdrawals can be up to $10,000/ year but cannot exceed $20,000 over a 4 year period.
What is the interest rate on this type of loan; $500 - $15,000, insured and uninsured?
Insured: Prime - 0.25 = 2.20%
Uninsured: Prime 2.45%
What is the percentages on withheld when someone withdrawals from their RRSP?
10% up to $5000
20% $5000 - $15,000
30% over $15,000
What 3 stipulations are there if there is a marriage breakdown and you want to remove the contributors name from the plan?
Provide written proof of1) No longer living together
2) No contributions made in the calendar year of request, nor in the 2 preceding calendar years
3) No funds withdrawn from it in that calendar year
What do you do with our copy of the Contribution receipt we printed with the member in front of us?
You scan it and put in a Kace ticket to Registered products titled "Instant Contribution Receipt"
Can RESP income be transferred to a RRSP?
Yes if any on the 3 conditions are met 1)The plan is open for 10 years and beneficiaries are 21 years old and not perusing post secondary 2) The payment must be made in the 35th year it was created 3) The beneficiaries under the plan are deceased
Is it possible to move a RRSP loan to another FI?
Yes, but any outstanding balance on the loan is required to be paid in full