AFM202 Chapter Notes - Chapter 5: Registered Retirement Savings Plan, Registered Education Savings Plan, Registered Retirement Income Fund

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM202
• Professor: Alan Mc Naughton

Document Summary

Pension income provided by an employer"s pension plan or government is included in a taxpayer"s net income for tax purposes. Included in income in the year the funds are withdrawn. Individual"s registered retirement savings plan (rrsp: registered retirement income fund (rrif) Income and government grants from a registered education savings plan (resp) For every dollar earned in excess of 910, 15% will be repaid from any oas received. Rrsps and tax-deferred plans can invest in a large variety of qualified investments: public shares, bonds, mutual funds, etc, restricted from private company shares, certain derivatives and real estate. Only individuals can have retirement plans: employer can make payments to the rpp or deferred profit sharing plan, employer can claim a deduction for such payments. "pension adjustment: taxpayers may choose not to claim a deduction on their rrsp contribution, will carry forward, can only be claimed once. Spousal contributions are subject to the same contribution limits.