BU357 Lecture Notes - Lecture 21: Canada Pension Plan, Tax Shelter, Financial Institution
Document Summary
Registered retirement savings plans (rrsp: rrsp is a tax shelter that gives individual an incentive to save money for his or her retirement years. Individual can contribute to an rrsp at any time up to and including 60 days after the year end, in order to claim an rrsp deduction on his tax return. If the person can not contribute to the maximum amount then they are allowed to carry forward any unused deduction limit. If funds are borrowed to make contribution to an rrsp, interest on the borrowed funds is not deductible. Lessor of: rrsp dollar limit = ,010 (2017, earned income of 18% for the prior year. If ea(cid:396)(cid:374)ed i(cid:374)(cid:272)o(cid:373)e is (cid:1006),(cid:1004)(cid:1004)(cid:1004) a(cid:374)d pa is (cid:1005),9(cid:1010)(cid:1004), that i(cid:374)di(cid:448)idual"s rrsp (cid:272)o(cid:374)t(cid:396)i(cid:271)utio(cid:374) (cid:449)ill (cid:271)e li(cid:373)ited to: net limited for rrsp = ,960 - ,960 = ,000, 18% * ,960 = ,960, how to calculate pension adjustment, 1. )
