If You Invested $10 000 in an RRSP 30 Years

question 43

Multiple Choice

If you invested $10 000 in an RRSP 30 years ago and it has a value today of $100000 ,what amount will you pay tax on when you withdraw it during your retirement years?

• A)Only on the initial $10 000
• B)Only on the $90 000 growth
• C)On all $100 000 as it is withdrawn
• D)There is no tax to be paid in retirement.

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Definitions:

C Corporations

A type of corporation subject to corporate income tax, with profits distributed to shareholders as dividends.

Report

A written or spoken account of something that has been observed, heard, done, or investigated.

Form 1120

The U.S. Corporate Income Tax Return, a form used by corporations to report their income, gains, losses, deductions, and credits to the IRS.

C Corporations

A type of business entity that is taxed separately from its owners, providing limited liability to its shareholders.