RESP Withdrawals
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
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Hold cursor over or click on each term to read its definition.
- Define the types of payments that a promoter may pay from a Registered Education Savings Plan.
- Educational Assistance Payment (EAP)1
- Accumulated Income Payment (AIP)2
- Refund of contributions to the subscriber or beneficiary3
- Payment to a designated educational institution in Canada4
- Repayments of amounts under the Canada Educational Savings Act or under a designated provincial program
- Payment to a trust to accommodate transfers of property between Registered Education Savings Plans (RESP)
- Explain what each type of payment from a Registered Education Savings Plan may consist of.
- Explain to whom each type of payment from a Registered Education Savings Plan may be paid.
- Explain the tax treatment of each type of payment made from a Registered Education Savings Plan.
- Estimate the tax impact of withdrawing from a Registered Education Savings Plan.
- Explain the circumstances when an Education Assistance Payment may be made from a Registered Education Savings Plan.5
- Define a qualifying educational program.6
- Define a specified educational program.7
- Define a post-secondary educational institution.8
- Identify the maximum amount of Educational Assistance Payments that may be paid from a Registered Education Savings Plan.9
- For studies in a qualifying educational program
- For studies in a specified educational program
- Identify that for circumstances in which the expenses of a program are substantially higher than the average, a promoter may contact the Canada Education Savings Program for a case-by-case approval.
- Explain the circumstances when an Accumulated Income Payment (AIP) may be made from a Registered Education Savings Plan.10
- Identify by when a Registered Education Savings Plan must be terminated once an Accumulated Income Payment is paid.11
- Explain the requirements to reduce the amount of an Accumulated Income Payment that is subject to tax.12
- Determine how each of these factors may impact the suitability of withdrawing from a Registered Education Savings Plan:
- Cash flow or income need
- Tax impact
- Evaluate how each of the factors may impact the suitability of withdrawing from a Registered Education Savings Plan.
REFERENCES
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define the types of payments that a promoter may pay from a Registered Education Savings Plan.
- Educational Assistance Payment (EAP)1
- Accumulated Income Payment (AIP)2
- Refund of contributions to the subscriber or beneficiary3
- Payment to a designated educational institution in Canada4
- Repayments of amounts under the Canada Educational Savings Act or under a designated provincial program
- Payment to a trust to accommodate transfers of property between Registered Education Savings Plans (RESP)
- Explain what each type of payment from a Registered Education Savings Plan may consist of.
- Explain to whom each type of payment from a Registered Education Savings Plan may be paid.
- Explain the tax treatment of each type of payment made from a Registered Education Savings Plan.
- Estimate the tax impact of withdrawing from a Registered Education Savings Plan.
- Explain the circumstances when an Education Assistance Payment may be made from a Registered Education Savings Plan.5
- Define a qualifying educational program.6
- Define a specified educational program.7
- Define a post-secondary educational institution.8
- Identify the maximum amount of Educational Assistance Payments that may be paid from a Registered Education Savings Plan.9
- For studies in a qualifying educational program
- For studies in a specified educational program
- Identify that for circumstances in which the expenses of a program are substantially higher than the average, a promoter may contact the Canada Education Savings Program for a case-by-case approval.
- Explain the circumstances when an Accumulated Income Payment (AIP) may be made from a Registered Education Savings Plan.10
- Identify by when a Registered Education Savings Plan must be terminated once an Accumulated Income Payment is paid.11
- Explain the requirements to reduce the amount of an Accumulated Income Payment that is subject to tax.12
- Determine how each of these factors may impact the suitability of withdrawing from a Registered Education Savings Plan:
- Cash flow or income need
- Tax impact
- Evaluate how each of the factors may impact the suitability of withdrawing from a Registered Education Savings Plan.
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