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CSI Financial Planning II (FPII) Sample Questions:
What tax consideration should employers take into account when setting up a supplemental executive retirement plan (SERP)?
A. The employer does not receive a tax deduction for the SERP contribution until the employee receives the benefits.
B. A SERP permits higher tax-deductible contributions by the employer than those allowed under a registered retirement savings plan.
C. When a SERP is registered with the Canada Revenue Agency (CRA) under the Income Tax Act, it provides for the employers contributions to be tax-deductible.
D. A SERP is eligible to be registered with the CRA provided that the employer makes a minimum contribution on behalf of the employee based on a percentage of the company's profits.
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When a Canadian works abroad for a Canadian employer, what proof must be provided to have that time qualify as residence in Canada for Old Age Security?
A. Proof of Canadian Residency.
B. Proof of paying Canadian Income Tax.
C. Proof of employment from the Canadian employer and proof of physically returning to Canada within 6 months of ending employment.
D. Proof of returning to Canada within one year of ending employment and proof of paying Canadian income taxes.
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Fiona's eligibility for insurance benefits is measured by her ability to perform the usual activities of daily living. What type of insurance policy does Fiona have?
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In order to complete the analysis and development of a financial plan, an advisor receives a client's investment statements and tax returns. From the perspective of principle six (code of ethics), what action should the advisor take in order to maintain a relationship of trust and confidence?
A. Making product suggestions that strictly benefit the client's overall financial positioning.
B. Using the data to investigate products before making a recommendation.
C. Referring the client for needs to other professionals within the advisor's network.
D. Securing the documents to be used by authorized personnel only.
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If an employee earns more than the yearly maximum pensionable earnings, but an employer continues to deduct Canada Pension Plan contributions, what will happen to the excess contributions?
A. The employee will receive the excess contributions as a refund on their tax return.
B. The employer must return the excess contributions to the employee as a taxable benefit.
C. The employee can elect to transfer the excess contributions to a Registered Retirement Savings Plan.
D. The employer will receive the excess contributions back to apply to the next year's contribution period.
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