Reference no: EM133132366

Questions -

Q1. PK was ordered to pay Sangita $15,000 from his RRSP as part of their divorce settlement. Sangita transferred the amount directly from PK's RRSP into her RRIF. Shortly after his divorce, PK married Yasmin, who received $10,000 as a refund of premiums from her late husband's unmatured RRSP. Yasmin received the $10,000 in cash on July 1st of her husband's death and she deposited the entire amount into her bank account. In February of the next year, she transferred the $10,000 into her RRIF. Who must pay income tax on the funds removed from the RRSPs?

Q2. When Jackson transferred his investments from his RRSP to his non-qualifying RRIF, he elected to base the RRIF on the age of his wife, Janet. At the beginning of this year, the fair market value of the assets in his RRIF was $220,000. Also at the beginning of this year, Janet was 63. Jackson was 74. Jackson plans to withdraw the minimum required amount from his RRIF this year. Had Jackson based his RRIF withdrawals on his age, his minimum withdrawal would be based on a percentage of 7.85%. By basing his minimum RRIF withdrawal on Janet's age, on what amount will Jackson be able to continue to defer tax?

Q3. For the past 10 years, Kirk has contributed $4,000 to a spousal RRSP for his wife, Francine. On December 31 last year, Francine transferred $10,000 from the spousal RRSP funds into a RRIF. The required minimum payment this year is 7.59%. If Francine withdraws $2,000 from the RRIF, how will the withdrawal be taxed?

Q4. Jerry died 3 weeks ago. His wife, Olive, who is 68, is eligible for a designated benefit of $175,000 from Jerry's RRIF. Jerry was to have withdrawn $8,000 from his RRIF this year but had only withdrawn $2,500 before his death. What happens to Jerry's RRIF? Can Olive transfer some of Jerry's RRIF to her own RRIF? How much and why?

Q5. Mike's total RRSP contribution room for the current year is $8,000, while his wife Maria's room is $2,000. Mike has decided to contribute $5,000 to his own RRSP and $3,000 to a spousal RRSP for Maria. How much can Maria now contribute to an RRSP on her own behalf without exceeding her own limit?

Q6. Kevin is the beneficiary of an RESP and he just received an educational assistance payment (EAP) of $5,000. Before the payment, his RESP had accumulated investment income of $16,000 and a CESG account balance of $2,000. What is the CESG balance be after the EAP?