Taxing Your Brain
If I withdraw $4K out of my RRSP, what is the withholding tax percentage?
10%
What is this year's TFSA contribution amount?
$7,000
What age can a TFSA be opened?
- must be at least 18 (or age of majority)
Which of the world's oceans is the saltiest?
Atlantic
What are some Investment options for RRSP's?
Variable, future first, Term Deposits, Savvy ILTD, Referral to WM for mutual funds/stocks.
Name one benefit of making an RRSP Contribution
-Peace of mind - knowing you are saving for your retirement
-Tax Deferred- you don't need to claim it as income until you withdraw
-Contributions are tax deductible which helps you reduce your taxable income
-Earnings are tax sheltered
-Interest is compounding
-Contribute throughout the year using Pre-Authorized Transactions
Automatic
Convenient
Tax shelter earnings immediately
Increases the effect of compounding
Painless way to make a yearly RRSP contribution
Who is eligible to contribute to an RRSP?
- anyone with earned income
What will happen to my contribution room when I make a withdrawal?
- Withdrawals are added to your unused contribution room starting the following year
What is the chemical symbol for Gold
What is Au
What do we need to open an RRSP Contract?
Members SIN, ID, name of eneficiary/successor annuitant if they chose, and a signed RRSP Contract
Name one benefit of making a TFSA Contribution
-Investment income earned is tax free
-No taxes withheld on withdrawal of funds
-Ability to top up previous years
-Variable TFSA - funds can be withdrawn at any time
-No requirement to have earned income to purchase a TFSA
-Unused contribution room is carried forward indefinitely - you can contribute whenever you have money
-Withdrawals are added to your unused contribution room starting the following year
-Income earned or withdrawals are not included as income for tax purposes, therefore will not affect eligibility for Federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, GST and the Canada Child Tax Benefit.
-No withholding tax when funds are withdrawn
Since inception, what is the max amount for TFSA contribution?
$109,000
Do you have to have earned income to contribute?
No
How many sides does a a hexagon have?
6
Contributions made during the __ day period may be deducted in the prior taxation year, the current taxation year or a future taxation year?
a. 30
b. 60
c. 90
b. 60
What is the penalty for over contribution on TFSA and RRSP?
An over contribution will result in a penalty tax
on the over contributed amount at a rate of 1%
per month for each month the over contribution
remains in the TFSA.
Does the max limit for TFSA apply to everyone?
No, it depends on the age of the plan holder. Must be 18 yrs of age (or age of majority) or year they became Canadian Resident
Ex: if member turned 18 in 2024 they would be eligible to contribute $7000 in 2024, $7000 in 2025 & $7,000 in 2026. Same principle for when one becomes Cdn resident
What taxes are payable if you withdraw?
None, members can take money out at any time.
What is the capital of Australia
Canberra
In a Spousal RRSP, who would be taxed if a withdrawal takes place within 3 years of when the contribution was made?
The Contributing Spouse will get taxed.
If the withdrawal is outside of the 3 year window, it then gets taxed to the actual plan holder.
What Year end slip do you receive when you make an RRSP withdrawal?
T4RSP. Any amount withdrawn from RRSP is considered income.
What is the 2026 RRSP Contribution limit?
$$33,810 or 18% of earned income (whichever is less)
What is the difference between Successor Annuitant and Beneficiary?
Successor Annuitant is a spouse or Common law partner. - upon death of the plan holder, the plan does not get paid out, it is transferred into the spouses TFSA.
Beneficiary can be anyone. - upon death, the plan is closed and paid out to the beneficiary.
How many minutes in a day
1440 = 24*60
What 2 programs allow you to withdrawal from an RRSP Tax free?
Home Buyers Withdrawal and Lifelong Learning Plan