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Quiz: Retirement Compensation Arrangement (RCA)

6 questions

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1 How much of a contribution to a retirement compensation arrangement must be remitted to CRA as refundable tax? Half of every contribution, and half of the income and realised gains earned by the RCA trust Nothing — refundable tax applies only on distribution A quarter of every contribution Half of every contribution only; trust income is not subject to refundable tax

Answer key unconfirmed — rests on 3 unverified claims.

2 At what rate is refundable tax recovered? In full on wind-up of the arrangement, regardless of distributions One dollar for every two distributed out of the arrangement Two dollars for every one distributed One dollar for every dollar distributed

Answer key unconfirmed — rests on 1 unverified claim.

3 Which adjustments does a retirement compensation arrangement give rise to? Select all that apply.

Select all that apply.

None — an RCA is not a registered plan A pension adjustment A pension adjustment reversal A past service pension adjustment

Answer key unconfirmed — rests on 3 unverified claims.

4 Which forms belong to an RCA? T733 to apply; T3D filed annually T1004 to apply; T3-RCA filed annually T733 to apply for an account number; T3-RCA filed annually by the custodian T510 to apply; T244 filed annually

Answer key unconfirmed — rests on 2 unverified claims.

5 What does the RCA definition catch, and what is excluded? It catches arrangements funded by employee contributions only It catches arrangements where an employer contributes to another party in connection with benefits on or after retirement, on a loss of office, or on a substantial change in services rendered; registered plans and salary deferral arrangements are excluded It catches only arrangements funding benefits after retirement; loss of office is outside it It catches any deferred compensation arrangement without exception

Answer key unconfirmed — rests on 2 unverified claims.

6 How are contributions and distributions treated for tax? Employer contributions are deductible; distributions are reported on a T4A Both employer and employee contributions are fully deductible; distributions are tax-free Employer contributions are generally deductible; employee contributions are deductible only in limited circumstances; distributions are reported on a T4A-RCA and are income when received Neither is deductible; distributions are income when received

Answer key unconfirmed — rests on 3 unverified claims.

Unanswered questions are marked wrong. There is no partial credit.