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Home My WebLink AboutThe Citizen, 2001-02-07, Page 12It's RRSP Time Make the most of your money Invest in your community Credit Union North Huron Credit Union Limited 8 Alfred Street, Wingham (519) 357-2311 Call us for competitive RRSP and Term Deposit Rates. All funds reinvested in our . local community. RRSP LOANS at Prime - 1% ATTON & KLEIST INSURANCE & FINANCIAL SERVICES Pauline Atton, CFP & Karen Kleist CLU, CH.F.C. 224 Josephine St., WINGHAM • 357-2669 1-877-860-9272 Fax 357-4070 Ito A spousal RSP pays two ways — a tax deduction now, plus equalized retirement incomes for a lower combined tax rate later. It could be the right strategy for you. ALL THINGS BEING EQUAL COUPLES CAN MINIMIZE FUTURE TAX BILLS ArIA CFP Certified Financial Planner Bert Askes Consultant Box 849 Wingham, Ont. NOG 2W0 (519) 357-4554 1 888 349-4447 Investors Group' SOLUTIONS BUILT AROUND YOU.'" r. Trade-marks owned by Investors Group Inc. and licensed to its affiliated corporations. Investors Group Financial Services Inc. LAURENTIAN BANK OF CANADA For All Your RRSPs Investment Needs See us at The Laurentian Bank of Canada 237 Josephine St., Wingham 357-2022 PAGE 12. THE CITIZEN, WEDNESDAY, FEBRUARY 7, 2001. F ,}4 inaneta .::,,,.% % `'R. ''''4> ‘.4r / . f ..4. ‘; 'a S3 ' %k., 41Q %: • Use RRSP funds to finance education Are you or your spouse attending school? If so, you may be able to make tax-free Registered Retirement Savings Plan (RRSP) withdrawals to help finance certain education and training programs. "Under the Lifelong Learning Plan, you can withdraw up to $10,000 a year — to a maximum of $20,000 over four years — to finance eligible education and training," says chartered accountant Rick Bassett, a tax partner with a St. Catharines firm. "In order to qualify, either you or your spouse must be enrolled as a full-time student in an education or training program of at least three months' duration." RRSP contributions must remain on deposit for at least 90 days before being withdrawn to help fund educa- tion or training programs. To avoid taxation on the withdrawals, you must repay the funds to your RRSP in equal instalments over 10 years. The first repayment will be due 60 days after the fifth year following the first withdrawal. "You can also par- ticipate in the plan more than once, providing your previous withdrawal has been fully repaid," Bassett says. Brought to you by the Institute of Chartered Accountants of Ontario. How to contact Canada Customs and Revenue Trying to get the amount of your 2000 RRSP contribution limit or other information from the Canada Customs and Revenue Agency (CCRA)? CCRA has a toll-free, automated Tax Information Phone Service — A self-directed Registered Retirement Savings Plan may be a good choice for you if you want your RRSP to include a broader range of investments, over which you have more control. "The range of investments avail- able to a self-directed RRSP includes cash, Canada Savings Bonds, treas- ury bills, bonds, debentures, invest- ment certificates, RRSP-eligible mutual fund investments, shares or warrants of companies listed on Canadian stock exchanges, shares of private companies (specific restric- tions apply) and certain mortgages Depending on your individual cir- cumstances, it may be a good idea to borrow money to make your maximum contribution to your Registered Retirement Savings Plan (RRSP). "If you have contributed less than your maximum in previous years and have significant unused contribution room, borrowing to catch up may make sense, especially if you are in a high income-tax bracket and can take advantage of the full tax deduc- tion," says chartered accountant Sonja Chong of Toronto. "However, the interest on money Instead of scrambling to make one large contribution to your Registered Retirement Savings Plan (RRSP) during the first 60 days of the year, consider making regular contribu- tions throughout the year. "Monthly contributions make sense from both a budgeting per- spective and an investment perspec- tive," says CA Kevin Dunn of Peterborough. "You can have funds automatically withdrawn from your bank account on a monthly basis and put into your RRSP." Monthly RRSP contributors also TIPS — that can provide general and personal tax information. TIPS is available from mid-September until April 30 and can be contacted by phoning 1-800-267-6999. If you call TIPS for 'personal RRSP informa- tion, such as your contribution limit, on real property," says Sonja Chong, FCA of Toronto. You ma) also hold your own house mortgage in your self-directed RRSP, says Chong, although there are accompanying set-up and annual administration fees. While self-directed RRSPs allow more control and investment flexi- bility, this should be weighed against any service or administration fees, which are not tax deductible. Ask your Chartered Accountant whether a self-directed RRSP is right for you. Brought to you by the Institute of Chartered Accountants of Ontario. you borrow to contribute to your RRSP is not tax-deductible, so it is usually best to use available cash to make your RRSP contribution." If you do take out a loan to make your RRSP contribution, Chong says you should try to repay it within a reasonable period of time. You should also use your tax refund to help repay the loan. Ask a Chartered Accountant whether the benefits of borrowing to make your maximum RRSP contribution outweigh the costs. Brought to you by the Institute of Chartered Accountants of Ontario. don't have to wait for a tax refund owing to them because of their RRSP contributions. • "You can apply to the Canada Customs and Revenue Agency for approval for your payroll adminis- trator to reduce the income tax with- holdings from each regular pay- cheque," Dunn explains. "That means you receive your refund through an increase in your pay- cheque, instead of in a lump sum in April," Brought to you by the Institute of Chartered Accountants of Ontario. you will be asked to provide your social insurance number, your month and year of birth, and the total income you reported on line 150 of your 1999 tax return. A complete RRSP guide can be found on the CCRA Web site at www.ccra-adrc.gc.ca. Visually impaired persons can get the guide in Braille or large print, or on audio cassette or computer diskette by call- ing 1-800-267-1267. For additional information, you can call your area tax services vffice. The number can be found in the gov- ernment section of your phone book. Brought to you by the Institute of Chartered Accountants of Ontario. Is self-directed RRSP right for you? Take out a loan to top up RRSP Make regular contributions retirement peace of mind require financial plannins 60iid inve,kit,ment. advicc. _f_ __, and a well-l-mlanced ortfolio REGAL CAPITAL PLANNERS LTD. Susan E. Alexander CFP 519-887-2662 INDEPENDENCE & TRUST