Certified Financial Planner (CFP) Practice Exam · Question
Mr. Davies has a net income of $120,000 in 2024. The OAS clawback threshold for 2024 is approximately $90,997, and the maximum OAS annual benefit is approximately $8,806. How much of his OAS benefits will be clawed back in 2024?
The OAS clawback rate is 15 cents for every dollar of net income exceeding the threshold. Mr. Davies' income exceeding the threshold is $120,000 - $90,997 = $29
Start free practice for Certified Financial Planner (CFP) Practice Exam
444 questions · no signup required · 40 free questions per day
Question: Mr. Davies has a net income of $120,000 in 2024. The OAS clawback threshold for 2024 is approximately $90,997, and the maximum OAS annual benefit is approximately $8,806. How much of his OAS benefits will be clawed back in 2024?
Answer options:
- His full OAS benefit will be clawed back. ✅ Approximately $4,350 will be clawed back.
- Approximately $8,806 will be clawed back.
- No benefits will be clawed back.
Correct answer: Approximately $4,350 will be clawed back.
Explanation: The OAS clawback rate is 15 cents for every dollar of net income exceeding the threshold. Mr. Davies' income exceeding the threshold is $120,000 - $90,997 = $29,003. The clawback amount is $29,003 * 0.15 = $4,350.45. This amount is less than the maximum OAS benefit, so he will lose approximately $4,350.
Start free practice for Certified Financial Planner (CFP) Practice Exam
444 questions · no signup required · 40 free questions per day
More about Certified Financial Planner (CFP) Practice Exam
More for Certified Financial Planner (CFP) Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Certified Financial Planner (CFP) Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.