Question
On January 31, 2021, the first year of her retirement, Concetta withdrew $12,000 from her spousal RRIF. In 2020, Lorenzo, her husband had deposited $10,000
On January 31, 2021, the first year of her retirement, Concetta withdrew $12,000 from her spousal RRIF. In 2020, Lorenzo, her husband had deposited $10,000 to the spousal RRSP giving it a balance at the end of the year of $120,000. Concetta turned 64 on January 15, 2020, and Lorenzo turned 63 on December 24, 2020. Both Lorenzo and Concetta have an average tax rate of 30% and a marginal tax rate of 40% in retirement.
a. How much did Concetta receive when she made the withdrawal?
b. How much income tax is owed by one or both?
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According to the rules concerning withdrawal in RRIF plan one must at...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
