Insurance

Taxation of Prescribed Life Annuities

Prescribed Life Annuities today have favorable tax treatment. On  January 1, 2017 that will change.  The taxable portion of a prescribed life annuity will increase significantly.

Currently the Income Tax Act uses life expectancy tables that were issued in 1971. These tables will be replaced with new longer life expectancies tables, which will result in the taxable portion of the annuity payment being much greater than it is today.

looking for guaranteed income for the rest of your of life you could benefit from significant tax savings if you purchase an Prescribed Life Annuity before 2017.

 

 

 

Investments

RRSP 2016 Contributions

The RRSP deadline for 2016 is fast approaching

To pay less income tax for 2016*, you need to contribute to your RRSP by March 1, 2017. The maximum contribution amount for 2016 is $25,370.00

You should consider an RRSP if:

  • You want to save money for retirement and be able to deduct your contributions from this year’s income
  • You’re looking to reinvest your tax savings
  • You want to use your tax savings to pay down non-tax-deductible debt,  like your mortgage