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Arnold Ingram Has $5,000 in Funds That He Does Not

Question 67

Multiple Choice

Arnold Ingram has $5,000 in funds that he does not currently need. He has a young son who he expects will pursue university education when he is older. Arnold is trying to decide whether the unneeded funds should be invested in a TFSA or an RESP. With respect to this decision, which of the following statements is NOT correct?


A) His current Tax Payable will not be affected by the choice between the two types of registered plans.
B) Withdrawals from either plan will be received tax free.
C) If he chooses the RESP, the plan will receive additional funds from the government in the form of Canada Education Savings Grants.
D) Contributions from either type of registered plan can be removed on a tax free basis.

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