Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Are these good advantages and disadvantages about RRSP’s? What can I include and remove?
Transcribed Image Text:ADVANTAGES
RRSP investments grow tax-free
RRSP contributions reduce their taxable income
• RRSP's ire protected from creditors
Ban fi
The income eamed in an RRSP is not taxed until it is
withdrawn
You get a tax refund every April if you invest in an RRSP
No withholding tax on US Dividends with an RRSP
You can withdraw money from your RRSP to fund your first
downpayment
Transcribed Image Text:DISADVANTAGES
RRSP withdrawals can impact Federal benefits
You must close up your RRSP account by the age of 71
The RRSP contribution limit is based on your income
RRSP withdrawal is heavily taxed
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