knowledge topics
RRSP Withdrawals
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify the types of withdrawals from a Registered Retirement Savings Plan.
- Cash withdrawal
- Home Buyer’s Plan withdrawal
- Lifelong Learning Plan withdrawal
- Identify who may request a withdrawal from a Registered Retirement Savings Plan.
- For a personal Registered Retirement Savings Plan
- For a spousal Registered Retirement Savings Plan
- Explain the potential tax impact of a cash withdrawal from a Registered Retirement Savings Plan.
- For a personal Registered Retirement Savings Plan
- For a spousal Registered Retirement Savings Plan
- Explain the income attribution rules related to withdrawals from a spousal Registered Retirement Savings Plan.1
- Who the income is attributed to
- Who is responsible for the tax on the withdrawal
- The timing of the withdrawal
- Explain the circumstances when the attribution rules for the withdrawal of funds from a spousal Registered Retirement Savings Plan will not apply.1
- Identify the current withholding tax rates for cash withdrawals from a Registered Retirement Savings Plan.2
- By residency
- By amount
- Explain how each of the factors may impact the suitability of withdrawing from a Registered Retirement Savings Plan for personal use, such as:
- Tax impact
- Loss of Registered Retirement Savings Plan contribution room
- Loss of asset growth within Registered Retirement Savings Plan
- Cash flow needs
- Impact on government benefits
- Evaluate how each of the factors may impact the suitability of withdrawing from a Registered Retirement Savings Plan for personal use.
- Calculate the withholding tax for a cash withdrawal from a Registered Retirement Savings Plan.
- For a personal Registered Retirement Savings Plan
- For a spousal or common-law partner Registered Retirement Savings Plan
- Estimate the tax impact resulting from a cash withdrawal from a Registered Retirement Savings Plan.
- For a personal Registered Retirement Savings Plan
- For a spousal or common-law partner Registered Retirement Savings Plan
- Explain how taxes payable on a cash withdrawal from a Registered Retirement Savings Plan may differ from the withholding taxes collected by a financial institution.
- Calculate the impact on current and projected net worth of a withdrawal from a Registered Retirement Savings Plan.
Glossary of Verbs (mouse over to see definition)
-
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
-
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 judgement through careful study
-
Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
previous / Lifelong Learning Plan (LLP)