Textbook Notes (368,313)
Canada (161,808)
York University (12,845)
ADMS 3520 (42)
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Department
Administrative Studies
Course
ADMS 3520
Professor
Thaddeus Hwong
Semester
Summer

Description
Registered Retirement Savings Plans (RRSP) Important Rules - Contribution Limit - Unused RRSP Deduction Room - Excess Contributions - Undeducted Contributions - Transfers into RRSP - Withdrawals 1)Home Buyers’ Plan 2)Lifelong Learning Plan - Spousal RRSP Contribution - Definition of Earned Income RRSP - it is a tax shelter - money contributed up to certain limits are deducted from taxable income - interest and dividend income are earned within RRSP without tax being payable - withdrawals out of RRSP are taxable RRSP Contributions - allowed to contribute 18% of last year’s earned income into an RRSP (maximum of $21,000 for 2009 year) - if the maximum allowed RRSP contribution is not made, the amount is accumulated in an account called “Unused RRSP Deduction Room” - contributions can be made in a future year up to the amount in the “Unused RRSP Deduction Room” Excess Contributions - this is when a taxpayer puts more money into an RRSP than he is allowed Undeducted Contributions - these are contributions into an RRSP that have not been deducted on the taxpayer’s personal tax return Transfers to an RRSP - In addition to the regular RRSP contribution each year, there are some transfers into an RRSP which are allowed. - These transfers are from: 3)A Registered Pension Plan 4)Another RRSP 5)From a Deferred Profit Sharing Plan 6)From a Retiring Allowance (which includes unused sick leave) Transfers Into RRSP - If a taxpayer receives a Retiring Allowance, they can put a lot of it into an RRSP subject to these limits: 1)$2,000 for each year of employment before 1996 2)$1,500 for each year employed before 1989 where the employer did not make a contribution to his
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