We are fast approaching a deadline for any annuity business you want to do this year.
While the official cutoff date for annuities to be issued by January 1st, 2017 the practical date is a lot earlier.
All the people who have turned 71 this year and have not bought a RRIF or a registered annuity, turn up in the tens of thousands at year end. You know who you are; you’re waiting for rates to go up or for the stock market to settle down.
Neither will happen. And for your peace of mind you don’t need to worry whether your money will be clogged up and not transferred in time for you to avoid paying tax on all the capital. It has happened and it will happen again to those who do not properly plan.
And on top of all that, the same applies this year to buyers of non-registered prescribed annuities who must annuitize before January 1, 2017 to avoid increased taxation, even if starting the income later.
So this blog is a shot across the bow. If you have any intention of getting an annuity, the time is now. Complete our annuity quote form and we’ll provide a personal annuity illustration.
Ivon T Hughes
The Hughes Trustco Group
Toll free: 877-842-3863