Question

Multiple Choice Search ayout References Mailings Review View Help 4. Which of the following is not a party to an RESP contract? a. Promoter b. Beneficiary C. Subscriber d. Administrator 5. Susan contributed $6,000 every year to a spousal RRSP from February 28, 2002 to February 28, 2017 for the 2013 tax year. If she stops contributing, when can her spouse withdraw funds without triggering income attribution rules? a. January 1, 2019 b. January 1, 2020 C. March 1, 2019 d. March 1, 2020 6. Which of the following is true regarding winding up an RRSP account? a. An RRSP must be wound up in the year the taxpayer turns 70. b. Once wound up retirees could cash in their entire RRSP, pay tax on it and buy a Ferrari. c. You can buy a DPSP. d. You can transfer the amount into another RRSP. 7. Faaz withdraws $7,000 from his RRSP What is the withholding tax amount that must be held back by the financial institution from which he made the withdrawal? a. So b. $1,400 CS500 d. $900 8. Natasha owns 400 shares of Magna Stock with a current market value of $90 a share. She originally paid $60 share for the 400 shares. If she decides to place these stocks in her RRSP account, how much tax will she have to pay, if any, on the contribution if her marginal tax rate is 45%? a. $5,400 b. Nothing as RRSP contributions are tax deductible. S10,800 d. $2.700 C 9. Which of the following is true about the Canada Education Savings Grant (CESG)? a. The prant is available to children who have an RESP or an in-trust account set up for them. b. The grant is available to all qualifying RESP beneficiaries under the age of 21 The grant is 20% on the first 52,500 of annual contributions d. There is no lifetime limit for the CESG. There is only an annual limit of $500

Answer 1

Solution :- 4

The correct answer is Option D that

Administrator is not a party to an RESP Contracts .

RESP stands for revised education saving plans. It is a type of arrangement between promoters and subscribers. It is a one type of plan in of a government can allow a subscriber to save money for the beneficiary education.

Therefore the parties to contract are promoter , subscribers and beneficiaries.

If there is any doubt please ask in comments

As per HOMEWORKLIB POLICY we need to answer only one question at once so please ask others as seperate one