SEGREGATED FUNDS AND ANNUITIES EXAM
WITH ACTUAL QUESTIONS AND 100%
VERIFIED ANSWERS | LATEST 2025/ 2026
UPDATE | GRADED A+ | 100% SUCCESS
What is the difference between Regular RRIF and Locked -in RRIF?
LLQP - SFA VL 24 - correct answer -Regular RRIF:
- The money came from a regular RRSP
- You can withdraw money from a regular RRSP at any time, so the same
holds true for a regular RRIF.
- A regular RRIF will have a minimum amount that you must take out
each year, but there is no maximum.
Locked-in RRIF
- The funds came from a pension so the company wants to restrict how
the employee withdraws that money.
- In retirement, there is a minimum withdrawal amount and a maximum
withdrawal amount designed to last most of the employee's retirement
(generally to around age 90)
,RRSP Contribution Room calculation steps
LLQP - SFA VL 25 - correct answer -1. Calculate earned income the
previous taxation
year.
- For this tax year, we would use last year's
income
2. Multiply earned income by 18% to get your
contribution limit.
- This is subject to yearly maximum set by the
government
-The limit generally increases each year
3. Account for what went into your pension plan
- If you or your employer contributed to pension
plan on your behalf, it will reduce what you can
put into your RRSP.
> Deduct PA (Pension Adjustment) from
previous year
,> Deduct PSPA (Past Service Pension
Adjustment) from currentyear
4. Add any unused RRSP contribution room
-e.g. You've calculated you can contribute $10,000 into an RRSP this
year. You also have $50,000 of unsed RRSP contribution room from
previous years. Therefore, you can contribute the $10,000 plus the
$50,000 unused contribution room, for a total of $60,000.
Last year, Sam earned $50,000 from his job, $10,000 in net
rentalincome, and $3,000 in interest. He has a defined contribution
pension plan at work, resulting in a Pension Adjustment (PA) of $2,000.
He also has $35,000 in unused RRSP contribution room from previous
years.
How much can Sam contribute to his RRSP?
LLQP - SFA VL 25 - correct answer -1. Earned income - $50,000 +
$10,000 = $60,000
2. Multiply earned income by 18
$60,000 x 18% = $10,800
3. Account for what went into your pension plan
=$10,800 - $2,000 =$8,800
, 4. Add any unused RRSP contribution room
= $8,800 + $35,00
= $43,800
What is "earned income"
LLQP - SFA VL 26 - correct answer -Incomes that you personally earned
including income from work, self-employment, rental properties, etc.
However, investment (e.g. interest) is not "earned: income (even
though it is "taxable"), because you did not earn it...Your portfolio did.
What are the 2 main government retirement plans?
LLQP - SFA VL 26 - correct answer -1. Canada Pension Plan (CPP) (QPP in
Quebec)
- A compulsory pension plan, if you have
income over a certain level. If you earn over
that level, you must contribute to CPP.
- Your employer must also match your
contributions.
WITH ACTUAL QUESTIONS AND 100%
VERIFIED ANSWERS | LATEST 2025/ 2026
UPDATE | GRADED A+ | 100% SUCCESS
What is the difference between Regular RRIF and Locked -in RRIF?
LLQP - SFA VL 24 - correct answer -Regular RRIF:
- The money came from a regular RRSP
- You can withdraw money from a regular RRSP at any time, so the same
holds true for a regular RRIF.
- A regular RRIF will have a minimum amount that you must take out
each year, but there is no maximum.
Locked-in RRIF
- The funds came from a pension so the company wants to restrict how
the employee withdraws that money.
- In retirement, there is a minimum withdrawal amount and a maximum
withdrawal amount designed to last most of the employee's retirement
(generally to around age 90)
,RRSP Contribution Room calculation steps
LLQP - SFA VL 25 - correct answer -1. Calculate earned income the
previous taxation
year.
- For this tax year, we would use last year's
income
2. Multiply earned income by 18% to get your
contribution limit.
- This is subject to yearly maximum set by the
government
-The limit generally increases each year
3. Account for what went into your pension plan
- If you or your employer contributed to pension
plan on your behalf, it will reduce what you can
put into your RRSP.
> Deduct PA (Pension Adjustment) from
previous year
,> Deduct PSPA (Past Service Pension
Adjustment) from currentyear
4. Add any unused RRSP contribution room
-e.g. You've calculated you can contribute $10,000 into an RRSP this
year. You also have $50,000 of unsed RRSP contribution room from
previous years. Therefore, you can contribute the $10,000 plus the
$50,000 unused contribution room, for a total of $60,000.
Last year, Sam earned $50,000 from his job, $10,000 in net
rentalincome, and $3,000 in interest. He has a defined contribution
pension plan at work, resulting in a Pension Adjustment (PA) of $2,000.
He also has $35,000 in unused RRSP contribution room from previous
years.
How much can Sam contribute to his RRSP?
LLQP - SFA VL 25 - correct answer -1. Earned income - $50,000 +
$10,000 = $60,000
2. Multiply earned income by 18
$60,000 x 18% = $10,800
3. Account for what went into your pension plan
=$10,800 - $2,000 =$8,800
, 4. Add any unused RRSP contribution room
= $8,800 + $35,00
= $43,800
What is "earned income"
LLQP - SFA VL 26 - correct answer -Incomes that you personally earned
including income from work, self-employment, rental properties, etc.
However, investment (e.g. interest) is not "earned: income (even
though it is "taxable"), because you did not earn it...Your portfolio did.
What are the 2 main government retirement plans?
LLQP - SFA VL 26 - correct answer -1. Canada Pension Plan (CPP) (QPP in
Quebec)
- A compulsory pension plan, if you have
income over a certain level. If you earn over
that level, you must contribute to CPP.
- Your employer must also match your
contributions.
