knowledge topics
DPSP Transfers
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify potential reasons why an individual may choose to transfer capital property into a deferred profit sharing plan.
- A voluntary or involuntary termination of employment of a plan member
- Voluntary choice by the annuitant to transfer
- Death of the annuitant’s current (or former) spouse
- Breakdown of the annuitant’s relationship
- Identify potential reasons why an individual may choose to transfer capital property out of a deferred profit sharing plan.
- A voluntary or involuntary termination of employment of a plan member
- Retirement
- Voluntary choice by the annuitant
- Death of the annuitant
- Breakdown of the annuitant’s relationship
- Identify the types of plans from which capital property may be transferred tax-deferred into a deferred profit sharing plan.1
- Identify the types of plans to which capital property may be transferred tax-deferred out of a deferred profit sharing plan.1
- Explain the Canada Revenue Agency’s requirements related to tax-deferred transfers of capital property to or from a deferred profit sharing plan upon the breakdown of a relationship between spouses.
- Estimate the tax impact of transferring capital property into a deferred profit sharing plan.
- Explain how each of the factors may impact the suitability of transferring capital property into a deferred profit sharing plan, such as:
- 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 deferred profit sharing plan.
- Estimate the tax impact of transferring capital property out of a deferred profit sharing plan.
- Explain how each of the factors may impact the suitability of transferring capital property out of a deferred profit sharing plan, such as:
- Cash flow needs
- Withdrawal options
- Tax impact
- Solvency of plan sponsor
- Government legislation (unlocking and transfer options)
- Evaluate how each of the factors may impact the suitability of transferring capital property out of a deferred profit sharing plan.
Glossary of Verbs (mouse over to see definition)
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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
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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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 judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
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