FIN 502 Study Guide - Registered Retirement Savings Plan, Tax Deferral, Deferred Income
Document Summary
Basic aspects of nature of income taxation: tax rate progressive and rate for each higher bracket applies only to additional/marginal income. 1: govt try to achieve objective w/ taxation laws, revise rev, promote social equity, encourage/discourage certain fin actions and manage ecn trends. 3. tax deferral save $ b/c of tvm. Income deferral if cant use income for consumption shouldn"t have to pay tax until can use it if can invest tax deferred income at rate of return that"s untaxed get faster compounding. W/drawl in low income yr benefit f/ lower marginal tax return on w/drawl. W/draw up to ,000 help buy family 1st home. Other uses of an rrsp: lifelong learning plan (llp) Fv _ yr = fv (1 + i)
