The beneficiary may terminate an RRSP voluntarily by:

Question 1 options:

answer the following questions

1i) The beneficiary may terminate an RRSP voluntarily by:

a) withdrawing the funds and paying tax immediately.

b) buying an annuity, either life or term certain, using all the money in the RRSP. The annuity payments are taxed when received.

c)transferring the money to a Registered Retirement Income Fund (RRIF) from which taxable payments will be received until the beneficiary dies or all the money runs out.

d) All of the above.

1ii)The three main savings vehicles are employer pension plans, government pension plans and the family home.

a) True

b) False

1iii) Savings made in before-tax dollars are known as:

a) Unsheltered savings.

b) Sheltered savings.

c) RRSPs.

d) RRIFs.

1iv) Defined benefit plans are more risky to ______ since they bear the investment risk of funds invested in the plan

a) employees

b) employees and employers

c) actuaries

d) employers