The Citizen, 2005-02-03, Page 13THE CITIZEN, THURSDAY, FEBRUARY 3, 2005. PAGE 13.
—
FINANCIAL
Find out about your government benefits
(NC)-You don’t have to cope all
alone with sudden changes in your
life. Government assistance and
benefits could make changing
circumstances a lot easier to manage
- provided you know what to claim,
and how to claim it.
Luckily, one website has now
emerged to show us definitively, all
of the support and services available
within Canada’s social safety net.
Seniors, for example, can now
find out about survivor and low-
income allowances, and also about
programs for prescription drugs,
adult care, and home adaptations. If
Maximize
and need more
on the resources and
programs offered
you are a student, you can find out
about grants and scholarship funds.
Perhaps you are a person with a
disability
information
support
nationwide.
Access to information on virtually
every government benefit program
is available on the Canada Benefits
website at: CanadaBenefits.gc.
ca
At last count, this single-window,
award-winning website had been
visited by over 1.6 million
Canadians, each with access to
information on hundreds of federal
and provincial programs and
services.
The benefits offered are either
financial or non-financial. A
financial benefit can either be a
direct payment (a grant, repayable
loan, or assistance) or an indirect
financial benefit, such as a
counselling service.
To fully explore the site, start with
one of four search options on the
Home page. You can locate a benefit
alphabetically using the A-Z
Benefits Index, or use the “I am”
option, a fast track to benefits
information for demographics such
as parents, seniors, students, people
with disabilities, and more.
Or, with the “Life Events” option,
pinpoint your status in categories
like retirement, unemployment,
learning, housing, health concerns,
etc. The site gives access to
government benefits and services
that are relevant to
circumstances and according
where you live.
The Benefits Finder
If you would prefer the site
deliver a more personalized
summary of potential benefits, be
your
to
to
your 2005 RRSP contribution
The maximum amount you can
contribute to an RRSP depends on
your earned income from the
previous year.
“For 2005, your contribution will
be limited to 18 per cent of your
2004 earned income, to a maximum
of $16,500. Therefore, you need at
least $91,667 of earned income in
2004 to maximum your 2005
contribution. This limit is further
reduced by your pension adjustment
for 2004. If you carry on business
through a corporation, try to ensure
that your 2004 salary is at least
$91,667 to allow a full $16,500
contribution in 2005,” advises
chartered accountant Jim Lockhart
of Kenora.
“In general terms, earned income
is income you receive from
employment, business or the rental
of real estate property, as well as any
alimony and taxable maintenance. It
is reduced by business or rental
and
For further information about
RRSPs, contact a chartered
accountant.
- Brought to you by the Institute of
Chartered Accountants of Ontario.
Withdraw tax
losses and any alimony
payments made.”
RRSP can finance home
“If you plan on taking advantage
of the RRSP Home Buyers’ Plan,
there are some important details to
consider.” says chartered accountant
Glen Lott of Markham.
“If you’re buying your first home
you can withdraw up to $20,000
from your RRSP. But you’ll need to
have the $20,000 in your RRSP at
least 90 days before making that
withdrawal. So, be sure to make any
additional contributions to your
RRSP prior to making your Home
Buyers’ Plan withdrawal.”
“Consider deferring repayment of
Home Buyers’ Plan withdrawals if
you have a low income year (for
example you’re on maternity leave
or collecting unemployment
insurance). If the required Home * Buyers’ Plan income.”
For further information about
RRSPs, contact a chartered
accountant.
- Brought to you by the Institute of
Chartered Accountants of Ontario.
Buyers’ Plan repayment is
made, the amount of the required
repayment is subject to income tax
in the year. If your spouse is in a
higher tax bracket, have your spouse
use this money to make an RRSP
contribution. The tax savings on the
spouse’s contribution will exceed
the income tax paid on the Home
not
How many RRSPs
are you allowed?
free from RRSP
If you’re planning on purchasing
your first home, you may withdraw
up to $20,000 from your RRSP on a
tax-free basis by taking advantage
of the Home Buyers’ Plan (HBP),
says chartered accountant Ann M.
Donohue.
“Your spouse may be eligible too,
which leaves the potential for
having up to $40,000 available
towards a home purchase. The
withdrawal is considered a loan
from your RRSP and must be repaid
over a period of 15 years. Certain
conditions and restrictions apply.”
For further information about
RRSPs, contact a chartered
accountant.
sure to try The Benefits Finder.
All you have to do is answer a
series of simple, anonymous
questions about your life
circumstances and then, once the
answers are submitted, this tool
delivers a list of relevant benefit
programs.
Access to benefits-related
information - including The Benefits
Finder and other topics of general
interest - is also available on the
primary Government of Canada
website, Canada.gc.ca
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There is no limit on the number of
RRSP plans you can have, but there
are limits on how much of your
investment can be insured.
“Most people find it simpler to
have only one or two plans, making
it easier to keep track of their RRSP
investments. In addition, it is much
easier to maximize your foreign
content with one RRSP. However, if
you are investing in assets which are
insured by the Canada Deposit
Insurance Corporation (CDIC), it
may make sense to have more than
one RRSP with different RRSP
insurers,” says chartered accountant
John Wonfor of Toronto,
“The CDIC only insures
$60,000 with each member financial
institution. By having RRSPs with
more than one institution, you can
increase the amount of your
investments that are covered by the
CDIC. Assets usually covered
include bank or trust company
deposits and GICs, but not mutual
funds.”
For further information about
RRSPs, contact a chartered
accountant.
- Brought to you by the Institute of
Chartered Accountants of Ontario.
up to
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