News and resources for Canada's top financial advisors
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
The tax savings: now and later – With a Spousal RRSP, the higher income earner gets the tax break when the funds go in, and, assuming continued lower income, the lower earner pays the lower tax rate when the funds come out. The result is real tax savings both before and after they retire.
The catch: Three-Year Attribution Rule – If Tom withdraws money from his Spousal RRSP, it will be included in Kathy’s taxable income, and taxed at her higher rate, if she has made a Spousal RRSP contribution in the year of the withdrawal or the two preceding years. This rule effectively negates the initial tax relief — and it can’t be avoided by having different Spousal RRSPs in different institutions. For example, if Tom takes money out in 2002, it will be taxed to Kathy if she has made ANY contributions to ANY Spousal RRSP in Tom’s name in 2000, 2001 or 2002.
The strategy: use Annuities and RRIFs – Tom can avoid triggering the three-year tax liability if he first converts the Spousal RRSP to a vehicle that restricts his withdrawals – namely a regular payment Annuity or a minimum payment RRIF. Here are two scenarios.
Scenario #1:
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
The tax savings: now and later – With a Spousal RRSP, the higher income earner gets the tax break when the funds go in, and, assuming continued lower income, the lower earner pays the lower tax rate when the funds come out. The result is real tax savings both before and after they retire.
The catch: Three-Year Attribution Rule – If Tom withdraws money from his Spousal RRSP, it will be included in Kathy’s taxable income, and taxed at her higher rate, if she has made a Spousal RRSP contribution in the year of the withdrawal or the two preceding years. This rule effectively negates the initial tax relief — and it can’t be avoided by having different Spousal RRSPs in different institutions. For example, if Tom takes money out in 2002, it will be taxed to Kathy if she has made ANY contributions to ANY Spousal RRSP in Tom’s name in 2000, 2001 or 2002.
The strategy: use Annuities and RRIFs – Tom can avoid triggering the three-year tax liability if he first converts the Spousal RRSP to a vehicle that restricts his withdrawals – namely a regular payment Annuity or a minimum payment RRIF. Here are two scenarios.
Scenario #1:
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
The tax savings: now and later – With a Spousal RRSP, the higher income earner gets the tax break when the funds go in, and, assuming continued lower income, the lower earner pays the lower tax rate when the funds come out. The result is real tax savings both before and after they retire.
The catch: Three-Year Attribution Rule – If Tom withdraws money from his Spousal RRSP, it will be included in Kathy’s taxable income, and taxed at her higher rate, if she has made a Spousal RRSP contribution in the year of the withdrawal or the two preceding years. This rule effectively negates the initial tax relief — and it can’t be avoided by having different Spousal RRSPs in different institutions. For example, if Tom takes money out in 2002, it will be taxed to Kathy if she has made ANY contributions to ANY Spousal RRSP in Tom’s name in 2000, 2001 or 2002.
The strategy: use Annuities and RRIFs – Tom can avoid triggering the three-year tax liability if he first converts the Spousal RRSP to a vehicle that restricts his withdrawals – namely a regular payment Annuity or a minimum payment RRIF. Here are two scenarios.
Scenario #1:
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
The tax savings: now and later – With a Spousal RRSP, the higher income earner gets the tax break when the funds go in, and, assuming continued lower income, the lower earner pays the lower tax rate when the funds come out. The result is real tax savings both before and after they retire.
The catch: Three-Year Attribution Rule – If Tom withdraws money from his Spousal RRSP, it will be included in Kathy’s taxable income, and taxed at her higher rate, if she has made a Spousal RRSP contribution in the year of the withdrawal or the two preceding years. This rule effectively negates the initial tax relief — and it can’t be avoided by having different Spousal RRSPs in different institutions. For example, if Tom takes money out in 2002, it will be taxed to Kathy if she has made ANY contributions to ANY Spousal RRSP in Tom’s name in 2000, 2001 or 2002.
The strategy: use Annuities and RRIFs – Tom can avoid triggering the three-year tax liability if he first converts the Spousal RRSP to a vehicle that restricts his withdrawals – namely a regular payment Annuity or a minimum payment RRIF. Here are two scenarios.
Scenario #1:
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
Show how RRIFs and Annuities can minimize tax on withdrawal
If you have married clients who are taking advantage of Spousal RRSPs, they know how it splits their retirement income assets for tax savings today and after they retire.
But do they know that the tax savings can depend on when they take the money out? If they’re nearing retirement, it pays to remind them of the Three-Year Attribution Rule — and the steps they can take to avoid its negative tax implications.
First let’s review how the Spousal RRSP works.
The tax savings: now and later – With a Spousal RRSP, the higher income earner gets the tax break when the funds go in, and, assuming continued lower income, the lower earner pays the lower tax rate when the funds come out. The result is real tax savings both before and after they retire.
The catch: Three-Year Attribution Rule – If Tom withdraws money from his Spousal RRSP, it will be included in Kathy’s taxable income, and taxed at her higher rate, if she has made a Spousal RRSP contribution in the year of the withdrawal or the two preceding years. This rule effectively negates the initial tax relief — and it can’t be avoided by having different Spousal RRSPs in different institutions. For example, if Tom takes money out in 2002, it will be taxed to Kathy if she has made ANY contributions to ANY Spousal RRSP in Tom’s name in 2000, 2001 or 2002.
The strategy: use Annuities and RRIFs – Tom can avoid triggering the three-year tax liability if he first converts the Spousal RRSP to a vehicle that restricts his withdrawals – namely a regular payment Annuity or a minimum payment RRIF. Here are two scenarios.
Scenario #1:
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
Show how RRIFs and Annuities can minimize tax on withdrawal
If you have married clients who are taking advantage of Spousal RRSPs, they know how it splits their retirement income assets for tax savings today and after they retire.
But do they know that the tax savings can depend on when they take the money out? If they’re nearing retirement, it pays to remind them of the Three-Year Attribution Rule — and the steps they can take to avoid its negative tax implications.
First let’s review how the Spousal RRSP works.
The tax savings: now and later – With a Spousal RRSP, the higher income earner gets the tax break when the funds go in, and, assuming continued lower income, the lower earner pays the lower tax rate when the funds come out. The result is real tax savings both before and after they retire.
The catch: Three-Year Attribution Rule – If Tom withdraws money from his Spousal RRSP, it will be included in Kathy’s taxable income, and taxed at her higher rate, if she has made a Spousal RRSP contribution in the year of the withdrawal or the two preceding years. This rule effectively negates the initial tax relief — and it can’t be avoided by having different Spousal RRSPs in different institutions. For example, if Tom takes money out in 2002, it will be taxed to Kathy if she has made ANY contributions to ANY Spousal RRSP in Tom’s name in 2000, 2001 or 2002.
The strategy: use Annuities and RRIFs – Tom can avoid triggering the three-year tax liability if he first converts the Spousal RRSP to a vehicle that restricts his withdrawals – namely a regular payment Annuity or a minimum payment RRIF. Here are two scenarios.
Scenario #1:
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
Show how RRIFs and Annuities can minimize tax on withdrawal
If you have married clients who are taking advantage of Spousal RRSPs, they know how it splits their retirement income assets for tax savings today and after they retire.
But do they know that the tax savings can depend on when they take the money out? If they’re nearing retirement, it pays to remind them of the Three-Year Attribution Rule — and the steps they can take to avoid its negative tax implications.
First let’s review how the Spousal RRSP works.
The tax savings: now and later – With a Spousal RRSP, the higher income earner gets the tax break when the funds go in, and, assuming continued lower income, the lower earner pays the lower tax rate when the funds come out. The result is real tax savings both before and after they retire.
The catch: Three-Year Attribution Rule – If Tom withdraws money from his Spousal RRSP, it will be included in Kathy’s taxable income, and taxed at her higher rate, if she has made a Spousal RRSP contribution in the year of the withdrawal or the two preceding years. This rule effectively negates the initial tax relief — and it can’t be avoided by having different Spousal RRSPs in different institutions. For example, if Tom takes money out in 2002, it will be taxed to Kathy if she has made ANY contributions to ANY Spousal RRSP in Tom’s name in 2000, 2001 or 2002.
The strategy: use Annuities and RRIFs – Tom can avoid triggering the three-year tax liability if he first converts the Spousal RRSP to a vehicle that restricts his withdrawals – namely a regular payment Annuity or a minimum payment RRIF. Here are two scenarios.
Scenario #1:
Scenario #2:
The tax benefits of a Spousal RRSP can be dramatic, especially if spouses have significantly different incomes. But often couples nearing retirement realize they should have begun much earlier. Take the time now to discuss Spousal RRSPs and the vital role of RRIFs and Annuities. For more on how they can benefit your clients and your business, please visit www.sunlife.ca/advisor.
December 2002
| Sun Life Financial Related Content | |
|
Related Articles Do your clients want to make the most of their spousal RRSPs? Retiring clients trying to choose between RRIFs and annuities? Retiring clients ready to convert their RRSPs? |
|
|
Sun Life Financial’s Tips and Tools on Advisor.ca Featured Case Study: Help your clients protect their businesses from unmanageable costs. |
|
| Sun Life Financial’s Advisor Site |
"Landmark" legislation is significant step forward in protecting investors, organization says
By James Langton |May 28, 2024
2 min read
Reichmann Segal Capital Partners says it plans to invest in new product development and expansion
By The Canadian Press |May 28, 2024
1 min read
Despite challenges, overall revenue grew
By Ian Bickis, Canadian Press |May 28, 2024
3 min read