Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please hurry Khadima made a mistake in calculating her RRSP contribution room and as a result she over-contributed $7,900 to her RRSP. She had made

please hurry
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Khadima made a mistake in calculating her RRSP contribution room and as a result she over-contributed $7,900 to her RRSP. She had made this mistake before and her over-contribution amount was reduced by $2,000 at that time. Calculate the amount of penalty the CRA will assess on her overcontribution if she withdraws $7,900 within 1 month. a. There will be no penalty assessed on Khadima since she withdrew it quickly. b. $79 c. $20 d. $59 Celine's income is $135,000. Her employer contributed $5,000 to a defined benefit pension plan on her behalf. Celine contributed an equal amount. Her pension adjustment is $11,600. Celine can contribute how much to her RRSP next year if the money purchase limit is $30,780? a. $12,700 b. $24,300 C. $14,300 d. $19,180 Longevity risk is: a. the risk that you may not be able to make sound financial planning decisions due to cognitive impairment. b. the risk that your retirement income will not be worth as much in the future as it is today. c. the risk of outliving your retirement income. d. the risk of dying young. Maggie borrowed from her RRSP for the LLP and is required to repay $1,800 a year. In 2014 , she paid only $1,000. Which of the following statements is true? a. The $800 is considered taxable income and does not have to be repaid. b. The $800 is added to her outstanding balance and amortized over the remaining year but she has to pay interest throughout the remaining years. c. The $800 is considered taxable income and has to be repaid. d. Maggie can pay an extra $800 the next year but she has to pay interest of 1% for 12 months on the $800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions