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ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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HOW DOES IT WORK Pre-tax money is placed by the investor into the RRSP account where the funds until they are withdrawn. At the time of withdrawal, they will be taxed at a marginal rate. It grow tax-free allows investors to compound without being taxed, as long as the funds are not withdrawn. RRSP encourages Canadians to save for retirement which will help the population to be less reliant on the Canadian Pension Plan for retirement needs.
Transcribed Image Text:HOW DOES IT WORK Pre-tax money is placed by the investor into the RRSP account where the funds until they are withdrawn. At the time of withdrawal, they will be taxed at a marginal rate. It grow tax-free allows investors to compound without being taxed, as long as the funds are not withdrawn. RRSP encourages Canadians to save for retirement which will help the population to be less reliant on the Canadian Pension Plan for retirement needs.
WHAT IS IT A Registered Retirement Savings Plan (RRSP) is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.
Transcribed Image Text:WHAT IS IT A Registered Retirement Savings Plan (RRSP) is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.
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