Question

Which of the following statements with respect to Registered Retirement Income Funds (RRIFs) is correct? An...

Which of the following statements with respect to Registered Retirement Income Funds (RRIFs) is correct?

An individual can make non-deductible contributions to a RRIF.

Earnings accumulate within the RRIF on a tax free basis.

A RRIF can only be established by individuals over the age of 71.

The minimum annual withdrawal from a RRIF is always determined by dividing the fair market value of the assets in the plan by 90, less the age of the beneficiary at the beginning of the year
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.Correct answer -Earnings accumulate within RRIF on tax free basis , since it is only at the time of withdrawal tax arises.

2.Contibutions made to RRSP are deductible in nature.RRSP converts into RRIF when the individual turns 71.Contributons are made to RRSP account hence the statement that individual can make non dedcutible contribution to RRIF is wrong (the statement that it being non deductible is also wrong)

3.RRIF should be established before the individual turns 71 hence the statement saying it can be established by individuals over the age of 71 is wrong

4.The minimum annual withdrawal from RRIF is determined by multiplying fair market value of the asset with 1 / 90 - age of beneficiary at the begining of the year).

RRSP = Registered retirement savings plan

RRIF = Registered retirement income fund

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Taxpayer Relief Act of Country A created the Roth IRA (A Roth IRA is an...
The Taxpayer Relief Act of Country A created the Roth IRA (A Roth IRA is an individual retirement account (IRA) that allows qualified withdrawals on a tax-free basis provided certain conditions are satisfied. Established in 1997, it was named after William Roth, a former Delaware Senator), which permits qualifying individuals to make after-tax retirement contributions of up to $2,000 annually. Contributions to a Roth IRA are not tax-deductible, but no taxes are paid on earnings generated from a Roth IRA....
Identify the definition ____ Individual retirement arrangements in which qualified contributions are tax deductible and income...
Identify the definition ____ Individual retirement arrangements in which qualified contributions are tax deductible and income and capital gains on investments within the account are not taxed until money is withdrawn after age 59 1/2. ____ Individual retirement arrangements in which contributions are not tax deductible and income but the future income and capital gains within these accounts are not taxed if the money is withdrawn after age 59 1/2. ____ Ordinary corporate operating losses can be carried forward indefinitely...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age 55, is the designated beneficiary on his Roth IRA. Ray's Roth IRA was established 3 years ago. Which of the following statements is(are) CORRECT? I Ray was not subject to required minimum distributions from his Roth IRA during his lifetime. II If Mary chooses to distribute the entire balance of the Roth IRA this year, the distribution may be subject to both regular income...
In 2020, Chip, an accomplished professional race car driver, is to receive a signing bonus for...
In 2020, Chip, an accomplished professional race car driver, is to receive a signing bonus for agreeing to drive for Hot-Lap International, a racing team. Hot-Lap agrees to establish a NQDC agreement with Chip to defer the bonus beyond Chip’s peak income producing years. Hot-Lap transfers the bonuses to an escrow agent, subject to the risk of forfeiture to team creditors in bankruptcy, who invests the funds in securities acting as a hedge against inflation. The bonus is deferred until...
Subject: Human Resource Management Main question: Which benefit plans would you choose, and which wouldn't you...
Subject: Human Resource Management Main question: Which benefit plans would you choose, and which wouldn't you choose and give reasons why you would or would not want a benefit that were used in making the benefit selections (specially at at entry level making $30000). PROCEDURES: Assume that you recently graduated from college and are just starting a new job at a large firm. You will be receiving a starting net pay (net of all taxes and mandatory deductions) of $30,000....
Team 5 answer the questions What are 4 key things you learned about the topic from...
Team 5 answer the questions What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Incentive Systems             In this paper, we will focus primarily on financial rewards that companies use to attract, retain and motivate the brightest and most talented candidates in the labor market. By providing a reward system that...
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe,...
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm. During 2016, the Deans had the following receipts: Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income—    City of Albuquerque general purpose bonds $1,000    Ford Motor company bonds 1,100    Ally Bank certificate of deposit 400 2,500 Child...
Please summarize the below article in approximately 100 words: Monumental function in British Neolithic burial practices...
Please summarize the below article in approximately 100 words: Monumental function in British Neolithic burial practices Ian Kinnes The high-risk rate of survival for the non-megalithic series of Neolithic funerary monuments, recently re-emphasized by Piggott (1973: 34), introduces a further variable into the deductive study of burial practices. In Britain and Europe the overall distribution of monumental forms present both lacunae and a marked preponderance of cairns over earthen mounds which are in ill accord with the known or predicted...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
3 SECURING THE WORKFORCE Diversity management in X-tech, a Japanese organisation This case is intended to...
3 SECURING THE WORKFORCE Diversity management in X-tech, a Japanese organisation This case is intended to be used as a basis for class discussion rather than as an illustration of the effective or ineffective handling of an administrative situation. The name of the company is disguised. INTRODUCTION In light of demographic concerns, in 2012, the Japanese government initiated an effort to change the work environment in order to secure the workforce of the future. Japan is world renowned for its...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT