Most features of ‘the June 14,
1990 legislation are effective in
1991 and future years.as set out
: below. However, the transitional
: provision which allows a trans-.

" Pension Pian (RPP) or. Deferred

. fer of up to $6,000 of Registered.

Terrace Review — Wednesday, February 12, 1992 21

only be available for ‘the, years
1991 to 1994.

Thus, .if you have RPP or DPSP:,

‘income in 1991. you may contribute
up to $6,000 during the first 60 days

of 1992 to a spousal RRSP and-

Y R U complaining? _

“face out of the. broccoli.”
It: goes” * downhill - from,’ there.
~ Soon, ‘the FT. ‘Spouse . “Inoves” .

‘There are wars goitig on across -

“the ‘country. ‘Small victories: are‘ ~

"won over dinner tables. Casualties

' drape themselves on. living: room —

sofas. ‘It’s RRSP time, and’ the

_*:. annual, combat of family. finances

has begun.

7 Evety family is raade up of two |
species of people: financial types

’ (FTs) and non-financial _ types

“).. \(NFTs); There.are no multi-human - ”

.. households filled with one species —
 . exclusively, It’s one of nature’s
‘laws. On the contrary, in the world:
“". of finance, it seems opposites _

. - attract. The result: RRSP wars.

- nothing more fulfilling than dron-
_ ing on endlessly about portfolios,
retum rates and (they rub their

‘ hands together on this one) jax,

shelters..

The NFTs doze off immediately |

at the words “earned: income". The
very mention. of “pension adjust-
- ment" sets. these folks to snoring,

and "accuniulated interest" will put es
The nuitber of f Fis and NFTs
divides equally among. male and

thenrina deep coma.
‘For this reason, RRSP season

incites the deterioration of family —
.dinner-table conversations: It’s'the’ "1
_ FT spouse who generally throws .

the. first bomb in this battle, as he ©
reaches for the bread. "I’d better.

get our portfolio in shape before
the deadline, dear, Where are those
T-4’s?"

"Uh, T-4’s, honey?"

"Yes dear, 1 need to look at your |

earned income. noo
‘ "“Forzrrzz."

bond funds or equity funds." .

“Zor77772." |

Now the kids jump in. "Mommy,
wake up and pass the butter. Bond
funds are fun."

"Daddy, what’s humiliated inter-

_ est? Moinmy said she wasn't inter-

estedininterest" =o

Sigh. "Please lift your mother’s

_ And then, war...

‘peyond mere: 'T-4’s. and. RRSPs, |
- delving into‘the heavy.artillery of |
‘RRIFs, GICs: and DPSPs. Sudden-. |

ly -every. conversation is peppered

with thé click of cal¢ulator keys, |
Gropping totals like Hand 1 mines. oe 7

“What are "al these papers here - | :

for?" ee”
AMER Teds."

7 ih en |
"T-know RRSPs R TDS 2 VU, |

The FTs relish the RRSP season | but U can: W money."

* the way kids relish. Christmas. To -
~ these calculating investors, there’s-

"Don’t start that with me.”
"It’s

"Stop talking in capital letters."
"y RU coniplaining? < GICs R
OK..
"Stop that.”. Sous
-"U want a- D-¢ return, don’ t U?"
"Pm taking my Ts and leav-
ing." . . a
Like LURY a

female genders. ‘This is not a sex-

related battle, of ‘differences, but |
rather simple. genetics, oe

‘In the womb, we all. originate as

‘NFTs. The “iwo. human financial
genes, R:and P, are fairly innocu-

ous on their own. When the toss of

—heréditary dice puts two Rs and a

P together, you get what’s known
as an "RRSP factor", resulting in a
genetic financial.’ ‘mutation, The

oO "species mect and marry. Revenue
"Wake up, dear. We need to
decide whether we should get into:

Canada dangles the prize: retire-
ment security. and:a tax reduction.
Peaceful co-
existence for these financial oppo-
sites can only: be. achieved with

professional guidance. It won't be

a bloody battte —— one side can
barely speak without capital letters,
and the. other keeps falling asleep.

' Mediators are. waiting at’ your
favourite bank.

. Stalks and bonds

“Stocks and bonds

Tes

Income tax

- Profit Sharing Plan (PSP)

obtain’ a 1991 deduction from

BZ. C FU have NF
‘money 4.a-GIC."

DEMERS & BRODIE
“Centified General Accountants —— s

os

_ PROVING A PULL RANGE OF

"PROFESSIONAL AC COUNT ING SER VICES,

- OLUDING DA TA PROCESSING, INCOME: TAK, .
AND MANAGEMENT CONSULTING —
Andrew C. Brodie, C.G.A. _Donna Demers, C.G.A.

2-4623 Lakels@ Avenue -

Terrace, B.C. VAG 1P9
638-8705

Nes
t ‘ ca 7
« Lo a
* e a we .
1

Credit Fo

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_ Phone 635- 7282

RRSP reforms for 1991 and later years

income. to a spousal RRSP will

income. .
*contribution limit is now 18% of
earned income ~

“alimony payments will be deducted

in computing earned income. .
“Contribution ‘limits - will ° ‘increase
annually to $15,500 in 1995 after
which this limit will be indexed.

_ *Unused RRSP deduction — entitle-

ments may be carried forward up to

‘ seven years,
. *Contributions can now be deducted

“| :in the year of your choice, subject to
, contribution limits in the current and
oa ‘Revere Canada will begin provid-
“ing taxpayers a dollar figure known

as RRSP Contribution Room.
This figure will be sent to taxpayers

late each calendar year and will be

determined from eameéd income as

" eported in the previous year’s tax

retum . together with information
reported to Revenue Canada by RPP
or DPSP trustees, in respect of that
previous year.

The result is a one-year lag in
RRSP contribution room because, for
example, the 1991 figure will be
determined from 1990 information.
“You may no longer roll over pen-

_ Sion income to: an RRSP except

under special circumstances,

i
\