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3) Carrie is 71 years old. She invested $15,000 in her Registered Retirement Savings Plan (RRSP) 25 years ago; the current market value is $959,443.
3) Carrie is 71 years old. She invested $15,000 in her Registered Retirement Savings Plan (RRSP) 25 years ago; the current market value is $959,443. She has not touched the account since she opened it 25 years ago. What amount will she pay tax on when she withdraws it? a) Only on the initial investment of $15,000 b) On the entire amount she withdraws c) Only on the growth (i.e. difference between the market value and her initial investment) d) If she converts it to a Registered Retirement Income Fund (RRIF), then she can withdraw the amount and pay no taxes e) There is no tax to be paid in retirement
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