Spouse RSPs let you share the wealth and save taxes

{NC}—Income - splitting
among partners is no easy
feat within today’s tax
rules. One notable axcep-
tion, though, is the spousal
RSP. This income - splitting
method enables individu-
als to direct all or part of
their maximum ‘contribu-
tion to a plan belenging to
their partner, This feature
is available to legally mar-
ried and common law
couples.

The spousal RSP is an
excellent way to assure tax
savings both immediately
and during retirement ~
especially if either spouse
will have substantially less
income at retirement.
Taxes on split spousal
incomes will generally be

end of the year in which
you reach age 69, you
can continue fo contribute
to a spousal RSP after the
end of that year as long as
your partner is under age
69-and you haye qualify
ing earned income,

While a spousal RSP can
be used to split income
prior to retirement, the
government has set up

_tules to discourage using it

this way. Contributions to
a spousal plan must stay
in the plan for at least two

full calendar years after

the last contribution is
made [the balance of the
year during which the last
contribution was made,
plus hwo years), otherwise,
withdrawals will be attrib-

Bd - The Terrace Slandard, Wednesday, February 3, 1999

within the first sixty days
of the following taxation
yeor. That way, your
spouse can, if they wish,
withdraw one year sooner,
without tax implications for
the contributor.
Contributions to a
spousal RSP are the prop-
erty of your partner who
will have full control over
the plan. In the event of a
relationship break ~ up,
the money remains the
property of your partner,
unless a court orders
otherwise. -

As with any RSP, the
sooner you begin contrib-
uling to a spousal plan,
the Detter of you'll be in
the years to come,

For more information

AZT like to contribute
fo your RRSP,"

By providing the right advice, guiding you to the right choices, 7
we can truly increase the value of your RRSP invesiments,

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| Lo |
© Bruce W. Hanks IBC

lower than those on uted fo the contributing cbout | Rss and other reg. Terrace: © Lori Kerr * Ken Gourlay

income earned by just one spouse for fax purposes. _istere plans, visit Roya Kitimat; © Tracy LaChance »® Shelley Ingvallsen © Marilyn Taylor

pariner. So, if you plan fo make a Bank’s Web site at = ye a SEEING BEYOND™
The amaunts contributed contribution to a spousal www. royalbank.com/your ™Trademerk oF CRC = Terrace 635-6231 © Kitimat 632-2168

to a spousal RSP do not RSP, try to do it before moneymatiers.

affect your partner's per-
sonal RSP contribution
limit. While you claim the
tax deduction, the amount
contributed to your RSP
and the spousal RSP can
not exceed your maximum
annual contribution
amount. Although you can
no longer contribute to
your own plan after the

RSP
time
savers

(NC)]—With teday’s hectic
lifestyle and busy pace,
many investors are hard
pressed to find the time to
make their annual RSP

December 31 instead of

RSP Questions
and Answers

(NC)-Here are answers to
some commonly asked
questions about registered
retirement savings plans.
Remember, your personal
banker is another greal
source for information
about RSPs.

Q: What if | am a mem-
ber of a company pension
plan?

A: Members of
company-spensored regis-
tered pension plans are
entitled. to the same contri-
bution limit as non-mem:
bers: 18 per cent of the
previous year’s earned
incame, P to the maxi-

i

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contribution, in fact, more mum established by the Your one stop-RRSP Investment Centre
than 80 per cent of RSP federal government, less ’ . ;
contibutions are made in the amount feferred y, as *
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ig A oe pre Pi reported on the T Multiplier Term Deposits:
eadiine. slip that you receive from . ;
Some financial institu: your employer. Flexible q
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convenience. ment such as a t :
For example, some Guaranteed Investment rates 4
banks allow customers to Certificate - has a fixed Secure 4
make a contribution and term, you may be charged ; 4
manage hei RSP invest a enclty. As won fone Invest now - Your Interest Rate will imams :
ments one, around: . . d
the-clock. They can even ranferfe, bien en automatically change with any 1
: H adian citi- a
oer oa the hone RSP zen but worked out ofthe Increase to March 1, 1999. :
invesiment consultant is country in the previous Ask Us About The Mulitplier q
always available lo pro- Year. Can | contribute ta cme ‘9 :
vide information about my RSP this iy the Primer Ss
ir RSPs. : ‘ : Ge , the answer .
rah “earrbuton oe is “no” if you hod no Invest now and your rate will :
transters between invest ; @ income j j j i i)
transfer between invest ig the year However increase with Prime Rate minus 2% |
ferred, customers con F you have une conti during the remainder of the term, :
make contributions an ylon room carried over j ini i
manage RSPs through the, ffom previous years, with a guaranteed minimum rate of ;
company’s comprehensive Revenue Canada will 4.75%. :
Internet site. allow it Bl
- News Canada - News Canada
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