Question a)

Accumulated income payments (from an RESP) paid to a subscriber:

	is only taxable on transfers under $50,000.
	is received tax-free by the subscriber as RESP contributions are made with after-tax funds.
	is always subject to the 20 percent additional tax with no exceptions.
	allows the subscriber to transfer the amount to an RRSP if there is sufficient room.

Question b)

Which of the following statements regarding the Tax Free Savings Account (TFSA) is NOT correct?

	Any unused amounts not contributed in a year may be carried forward indefinitely to future years.
	Capital gains earned within TFSAs are not taxed
	The contributions are tax deductible up to a maximum of $10,000 per year for the 2015 year.
	Any Canadian resident individual over 17 years of age can establish a TFSA.

Question c)

Both RRSPs and RESPs offer the advantage of having earnings compound on a tax-free basis.

	True
	False