False, only people with an income need to pay income tax.
100
True or False:
TFSA is better than RRSP
False, it really depends on your own situation.
200
Who is eligible to open a TFSA?
Anyone 18 years or older with a valid SIN number.
200
True or False?
Everyone will receive a tax refund from the government.
False. You would only receive tax refund if you have over paid income tax throughout the previous year.
200
There is a maximum age limit for contribution. What type of investment plan is it? RRSP or TFSA
RRSP
300
True or false?
The annual contribution room of TFSA for the year of 2014 is $5000.
False. The contribution room was $5000 when TFSA first lauched in 2009. In 2013, it increased to $5500 due to inflation.
300
What is the take home pay?
Take home pay is the part of your income after paying tax (the part that you actually take home).
300
If your income or tax rate will be lower when you contribute to this investment plan, you will get more money. What investment plan is it?
a) RRSP
b) TFSA
B) TFSA
400
Please list 2 types of investments that a TFSA can hold.
cash, mutual funds, securities listed on a designated stock change, guaranteed investment certificates (GICs), government or corporate bonds,certain shares of small business corporations.
400
What is the take home pay of an individual if he has an annual income of $100,000 and he has to pay $19,407.01 of tax?
$100,000-$19,407.01=$80,592.99
400
True or False:
You loose all your money in your TFSA account after you die.
False, it can be transferred to the plan of your spouse or common-law partner.
500
List 2 differences between RRSP vs. TFSA.
Annual contribution limit:
-18% of income earned, Maximum of $24,270
-$5500 per year ;
Age limits:
-Cannot contribute after 71 years old
-No age limit;
Tax-deductible Contributions:
RRSP - yes
TFSA - No;
Tax on Withdrawals:
RRSP - Yes
TFSA - No;
Contribution Room Restored after Withdrawals:
RRSP - No
TFSA - Yes
500
How much federal tax does an individual earning $40,000 a year has to pay?
*federal tax rate on the first $43,953 of taxable income is 15%*
$40,000 x 15% = $6000
500
If you want to buy a house for the first time, which investment plan is better suited for you? RRSP or TFSA? (hint: Home buyers plan)