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20 Cards in this Set
- Front
- Back
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Non-Family plan
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Beneficiary can be anyone
Contributions made up to the plans 22 year. |
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Family Plan
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Can have more then 1 beneficiary
-less then 21 -related by blood or adoption to subscriber |
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Group Plan
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-Available through foundations
-administered by age group -contribution calculations done by actuaries |
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To be a Joint Subscriber
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must be spouse when plan is opened.
Can continue as JTWROS after a divorce |
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Subscriber can be changed to
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1. Spouse
2. Former spouse with Court order |
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Change of Subscriber after death
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Can be changed to
-new individual -estate of subsriber |
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Employer-sponsered Plan
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Employer has no role as subscriber
Employer contributions are a tazable benefit |
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Changing Beneficiaries
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Any Contributions made to a plan prior to change are deemed to be made at original date
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Changing Beneficiaries
Contributions deemed at original dates with 2 exceptions |
1.new & previous bene are: under 21
blood/adoption related blood/adoption relation to subscriber new bene is: under 21 same parent as previous bene |
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RESP contribution Limits
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$4000/year
$42,000 life time max |
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Transfering a RESP has no tax implications if...
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1.Bene is the same
2.Bene is the sibling of the bene |
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EAP (Education assistance payment)To qualify
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1.enrolled full time in program
2.part-time if physically or mentally impaired |
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MAX EAP
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first 13 weeks = lesser of $5000 or actual expenses
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AIP (accumulated Income Payment)
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Income earned in the plan & paid out to the subscriber
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EAP
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Accumulated CESG & Income paid out to the student
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AIP can be paid out if...
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1.Paid to one subsriber
2.Canadian resident 3.PLus any one of these three -existed for 10years & bene not eligible - existed for 26 years -bene is deceased |
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AIP Taxation
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Reported on T4A as income
20% WHT |
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Transferring AIP to RRSP is possible if
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-under $50K
-must have contribution room -must be subscriber or spouse of deceased subscriber |
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Termination of RESP
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Must happen before the 26th year
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CESG room
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accumulated by every child up to & including age 17
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