RRSP Transfers

KNOWLEDGE EXPECTED OF: QAFP® 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.

  • Explain the age limit for transferring property to a Registered Retirement Savings Plan.1
    • For a personal Registered Retirement Savings Plan 
    • For a spousal Registered Retirement Savings Plan  
  • Identify potential reasons why an individual may choose to transfer capital property into a Registered Retirement Savings Plan.
    • Unlocking of locked-in assets
    • Death of the annuitant’s current (or former) spouse
    • Voluntary choice by the annuitant to transfer
  • Identify potential reasons why an individual may choose to transfer capital property out of a Registered Retirement Savings Plan.
    • Retirement
    • Death of the annuitant
    • Voluntary choice by the annuitant to transfer 
  • Identify the types of plans from which capital property may be transferred tax-deferred into a Registered Retirement Savings Plan.  
  • Identify the types of plans to which capital property may be transferred tax-deferred out of a Registered Retirement Savings Plan.2,3,4
  • Estimate the tax impact of transferring capital property into a Registered Retirement Savings Plan. 
  • Determine how each of these factors may impact the suitability of transferring capital property into a Registered Retirement Savings Plan: 
    • Withdrawal options 
    • Tax impact
    • Impact of future withdrawals on government benefits 
  • Evaluate how each of the factors may impact the suitability of transferring capital property into a Registered Retirement Savings Plan.  
  • Estimate the tax impact of transferring capital property out of a Registered Retirement Savings Plan. 
  • Determine how each of these factors may impact the suitability of transferring capital property out of a Registered Retirement Savings Plan: 
    • Cash flow needs
    • Withdrawal options
    • Tax impact
    • Government legislation (unlocking and transfer options) 
  • Evaluate how each of the factors may impact the suitability of transferring capital property out of a Registered Retirement 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.

  • Explain the age limit for transferring property to a Registered Retirement Savings Plan.1
    • For a personal Registered Retirement Savings Plan 
    • For a spousal Registered Retirement Savings Plan  
  • Identify potential reasons why an individual may choose to transfer capital property into a Registered Retirement Savings Plan.
    • Unlocking of locked-in assets
    • Death of the annuitant’s current (or former) spouse
    • Voluntary choice by the annuitant to transfer
  • Identify potential reasons why an individual may choose to transfer capital property out of a Registered Retirement Savings Plan.
    • Retirement
    • Death of the annuitant
    • Voluntary choice by the annuitant to transfer 
  • Identify the types of plans from which capital property may be transferred tax-deferred into a Registered Retirement Savings Plan.  
  • Identify the types of plans to which capital property may be transferred tax-deferred out of a Registered Retirement Savings Plan.2,3,4
  • Estimate the tax impact of transferring capital property into a Registered Retirement Savings Plan. 
  • Determine how each of these factors may impact the suitability of transferring capital property into a Registered Retirement Savings Plan:
    • Withdrawal options 
    • Tax impact
    • Impact of future withdrawals on government benefits 
  • Evaluate how each of the factors may impact the suitability of transferring capital property into a Registered Retirement Savings Plan.  
  • Estimate the tax impact of transferring capital property out of a Registered Retirement Savings Plan. 
  • Determine how each of these factors may impact the suitability of transferring capital property out of a Registered Retirement Savings Plan: 
    • Cash flow needs
    • Withdrawal options
    • Tax impact
    • Government legislation (unlocking and transfer options) 
  • Evaluate how each of the factors may impact the suitability of transferring capital property out of a Registered Retirement Savings Plan. 
Additional Knowledge Expected of CFP Professionals
  • Identify potential reasons why an individual may choose to transfer capital property into a Registered Retirement Savings Plan.
    • Breakdown of the annuitant’s relationship† 
  • Identify potential reasons why an individual may choose to transfer capital property out of a Registered Retirement Savings Plan.
    • Breakdown of the annuitant’s relationship 
  • Explain the Canada Revenue Agency’s requirements related to tax-deferred transfers of capital property to or from a Registered Retirement Savings Plan upon the breakdown of a relationship between spouses.5

† Relationship refers to marriages between spouses, common-law partners or similar relationships in jurisdictions where pension legislation provides for the division of capital property held within a pension upon relationship breakdown.

REFERENCES
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