Quiz informational : do you really Know the RRSP?

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During a vox pop that our team has done last summer, we realized that the RRSP remains nebulous for many young (and less young as well).

So here is the opportunity to test your knowledge and begin to think about it, if this is not already the case.

It is important to note that some of the information is valid for the tax year 2018 and could change in the years to come.

QuizQuestion #1Commençons by a easy. What does the acronym RRSP ?

Plan registered retirement savings

Pension scalable savings at the register

Income savings for retired

Withdrawal considered saving regenerative

Plan registered retirement savings
The program was instituted in 1957 by the federal government. Basically, it lets your savings grow tax-free until your retirement. Question #2Quel is the minimum age to contribute more than $ 2000 to an RRSP ?

18 years

21 years

25 years

There is no minimum age

18 years
It is possible to contribute to it before the age of 18, but the amount of the contribution may not exceed$2000.Question #3Vrai or false : The march 30, 2019 is the deadline to contribute to your RRSP for the tax year 2018.

True

False

False
This is the 1st of march 2019.Question #4 unless the amount exceeds the ceiling of 26 230 $, the maximum contribution to the RRSP represents what percentage of the income of the previous year ?

10%

12%

16%

18%

18%
Note that three factors can reduce or increase the maximum amount : the unused contribution room, contributions to a pension plan and the excess contributions.Question #5Vrai or false : Generally, the higher your tax rate is, the higher the contribution to the RRSP becomes advantageous.

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True

False

True
The contributions reduce your taxable income. Consequently, this reduces the tax bill more significantly when the tax rate is higher.Question #6Vrai or False : If you want to save for a short-term project like a trip or buying a car, it would be preferable to opt for the TFSA (tax free savings).

True

False

True
Unlike withdrawals from an RRSP, withdrawals from a TFSA are tax-free. But the fact of contributing to a does not contribute to the other. Everything is a question of using the strategy that is most optimal based on your savings goals.Question #7Vrai or False : Borrow to contribute to your RRSP is never advantageous.

True

False

False
In some situations, the tax refund and return of investments can offset the cost of the financing. However, it remains highly advisable to consult an expert to make the decision that’s most beneficial. Question #8Selon the 2016 census, what was the rate of contribution among households whose economic support that is main comes from people aged 25 to 34 years ?

10.1%

15.8%

37.3%

56.7%

37.3 %
In the 15-24 age group, it was 14.3% of households. Among households aged 35-44 and 45-54, it was 45 % and 47.6 %, respectively. Question #9 The RAP, it is : (it reveals and then how it can serve you)

Early withdrawal of benefits

The favorite music of François Legault

The register of assets and liabilities

The plan of home ownership

The plan of home ownership
The HBP is a program that allows you to withdraw up to $ 25,000 in a calendar year from an RRSP to buy or build a home. Under certain conditions, this may allow for first-time buyers to use their RRSP savings to fund a downpayment. The amount must then be repaid according to a schedule pre-determined. It remains important to consult an expert to ensure that it is the right strategy according to your situation.Question #10Situation hypothetical : let’s Imagine that you cotises of $ 1,000 annually for 40 years (for a total of $ 40,000), and that the rate of return is constant at 5 % during this period. What about the amount accumulated in the end ?

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About 105000$

About 85000$

About 125000$

About 65000$

Approximately$125,000
This is the magic of compound interest at work ! Basically, deprive yourself a little now earns exponentially over time. It is never too early or too late to start saving for his retirement. Share your result on Facebook

 

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