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contribuhons made before that date still vest under the old rules This means thot someone who is age 55 and does not have 10 mdmwfihmflnobyevuiflnoflluefinmy mdhsmpbvnfhulhermou"y m«uwwwomw»umbausm ofopondhnewm:o‘mmmempbnrbduefie m'sw-vcsv‘ut.dmhm‘ These new rules apply to Jan. 1, 1987 is also an important date for the implementation of pension reform for company pensions. The Federal Government has ruled that pensions under its jwrisdichon will now be vested d&nomdmm,wmwfie selfâ€"employment will be iess than the current maximum annuo! CPP rehrement pension payable at age 65. in 1987 this will amount to umm‘mmm.mmmomm mmmhdowfiswhnfisdmrmw PMormally, your Canada Pension Plan is poyable the month after mwmy.mmm,mwmmw bmdmwwmmmhonm contributing to the Plan. For each month between age 65 and mmmm,mwmummo.fi each month or 6% annually. Prior to 1987, if you had retired at weSS.mwoddhonhndtomtoqufibcoMmy benefits at all. Now, when budgeting your future income fiow after rethirement you can take your benefits early rather than warthng to age 65. COMPANY PENSION PLANS Now, you can start receiving reduced Canado Pension Plan Muw‘ymmw,wmmmw ceased working at the time of application to receive the banefit. CANADA PENSION PLAN CHANGES The Coanado Pension Plonâ€"{CPP) chonges which became tow Jan. I,Wmhmmmnmwflm he dream of early retwrement is now more accessible than T ever. Recent changes to the Canada Pension rules, other Plan limits will enable many Canadions to achieve their early rehrement goals sooner than they expected. By David Gillians *“““bhdfl“m about eatibution since any income earnad by the child is moame from a business and is taxable to the child. (Continued from page 19) Where an interestâ€"bearing ioan is made, the attribyhon sules will not apply as long as interest is paid at o rate at least equal to the "prescribped" rate {currently 9%) or the prevailing commercial rate then in effect and provided the interest is paid no later than 30 doys after the end of each year in winch the loan was outstanding. Therefore, it is still possible to spiit investment income with o”flw*nww’“w to exceed the interest paid on the loan. The attribution rules anly apply to income derived from the property loaned or twansferred. income earned on income which has already been subject to attribvrion will conshtute income of the spouse or minor child. Obviously a signihcant amount of bookkeaping will be required in arder to seport the corvect amount of income in each tax seturn. mm_* do not apply to income from o Income splitting Cherished dream of early retirement is now more accessible Dinne Abbott, CA. is 0 tux manager with Thorme Ernst & Whinney in Kitchener. many of the incomeâ€"spittting arrangements of the past, other eccumulates taxfree in the plan and is taxed in the childran‘s hands {at their lower rates) when withdrown. interest earned on family allowance poyments will not attract attribuhon if the funds are deposited in c bank account in the child‘s name. Over a period of time the child may accumulate o fund which could be used for education or ather purposes. Nugff method of spiitting income as tong as the tunds are not withdrown before three years have expired since the last apovsal contribuhon. Proposed incredses to RRSP contribuâ€" hon hiuts will make spousal RRSP‘; even more attractive in Registered Educaton Sovings Plans {RESP‘s) should also be considered. A RESP allows parents to accumulate funds for Penmon and Company Pension rules are all part of 0 trend by Governments in Canada to encourage Canadians to become more self sufficient. These changes pivs the $500,000 capital goins exemption, will make early retrement planning easer for those c«mmmd.-m,madwwm experhse to reakze this dream. MG‘-:&MMMWMM Trust, 73 King St. W. Kitchener. Beginning in 1988 any unused RRSP contribuhon may be camed wmm.&rmdowmfima MMM‘hhm“mw designed so thot members of pension plans will be able to fund their own refrement program equally with those who are not members of persion plans. The new increased contribution limits provide an excellent opportumity for Canadians to fund their own retrement package by making use of RSP tax deductible savings programs. contribution limits will be phased as follows: (subject to o maximum of 18% earned income} or deferred profit shoring plan, the maximum RRSP contribution himt will be the fesser of $3,500 and 20% of earned income, iess contribshons made by the individual to his or her Registered Pension Plan in the year. 1988 AND SUBSEQUENT YEARS through their RRSP and do not FOR 1986 AND 1987 An individual who is not a memiber of a Registered Pension Plan or deferred profit sharing plan moy contribute an amount to his RRSP equal to 20% of his earned income to o maximum of REGISTERED RETNRED SAVINGS PLANS Bill Câ€"23 contains several changes to the income tax act as proposed in the Federal Budget of Feb. 26, 1986, and was enacted into tow Dec. 17, 1987. 1991 Fum-duommduw&num'hn iplithng techmques should be reâ€"examâ€" 11,500 86,111 ‘ 475 KING ST. m A | ”“umm im (519) 8624022 ONTARIO * CANADA Hosting Major Meetings & Conventions for 15 Years * Comvention Registration W . Cameron Leith * 60 minutes from Toronto * Meeting Packages * Convention Themes * Audio/Visual Equipment FOR RESERVATIONS, PLEASE CALL 742â€"3520 between 9:00 a.m.â€"5:30 p.m. WEDNESDAY, Feb. 11 â€" 7:30 p.m., Regal Capital Pilanners, 153 Union St. E., Waterioo MONDAY, Feb. 16 â€" 7:30 p.m., Conestoga inn, Saion D, 1333 Weber St. E.. Kitchener WEDNESDAY, Feb. 18 â€" 7:30 p.m., Regal Capital Planners, 153 Union St. E.. Waterioo 50 Cork St. E. 159 King St. E. Kitchener 51 Water St. «â€" Do you really need an RRSP? «+ RRSP contribution rules for 1987 «â€" ‘‘Match Your RRSP" â€" an exclusive wealth accumulation plan from the Benlax Fast Cash Refunds FREE RRSP WORKSHOP For people who want their money now! Bentax gives you your tax refund money now. At low rates. And our experts often find ways to reduce your taxes. So you get bigger refunds, faster A Division of Beneficial Canada Inc. HEAD OFFICE â€" REGAL FinanCiai Centre _ Sm en 153 Umon S1 East, Waterico Ontano N2J 1C« _ Ohn Petrosino DATES & LOCATIONS BenlTax CAPITAL PLANNERS * 160 Guestrooms * 17 Meeting Rooms * Capacities 5â€"1,000 * Indoor pool; Sauna * Whiripool; Exercise Room 11, 1987 â€" PAGE 21 884â€"1566