{"id":612,"date":"2012-04-25T10:51:35","date_gmt":"2012-04-25T15:51:35","guid":{"rendered":"http:\/\/www.lifeannuities.com\/blog\/?p=612"},"modified":"2012-04-25T10:51:35","modified_gmt":"2012-04-25T15:51:35","slug":"annuity-tax-schedule","status":"publish","type":"post","link":"https:\/\/lifeannuities.com\/blog\/retirement\/annuity-tax-schedule","title":{"rendered":"Annuity Tax Schedule"},"content":{"rendered":"

From time to time, we are asked to explain how annuity taxation<\/a> works and, in particular, how annuity taxation works for registered annuities.<\/p>\n

Case study:<\/p>\n

Single Annuity, Male, Age 62, RRSP, $150,000, Guarantee Period of 10 years. Purchase date May 1, 2012, Start Date June 1, 2012<\/p>\n

This man pays income tax on the complete payment he receives. Remember he has tax sheltered this money by deducting it from his taxable income . Now the government wants its income tax on that capital as well as on the interest or gain earned.<\/p>\n

To better illustrate how this annuity taxation<\/a> works, I am setting out an annuity tax schedule.<\/p>\n

PDF Illustration: Annuity Tax Schedule for Registered Funds
\n<\/a><\/p>\n

\"\"<\/a><\/p>\n

You will see that the client is investing $150k in registered funds with a minimum 10 year guarantee. Then if you look at the annuity tax schedule, you will see that the monthly amount is fully taxable each year.<\/p>\n

Annuity taxation for non registered funds shows that there is no income\u00a0 tax on capital invested, only on the gain.<\/p>\n

PDF Illustration: Annuity Tax Schedule for Non-Registered Funds<\/a><\/p>\n

\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

From time to time, we are asked to explain how annuity taxation works and, in particular, how annuity taxation works[…]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[5,88,24,23],"class_list":["post-612","post","type-post","status-publish","format-standard","hentry","category-retirement","tag-annuity","tag-schedule","tag-tax","tag-taxation"],"_links":{"self":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/comments?post=612"}],"version-history":[{"count":9,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/612\/revisions"}],"predecessor-version":[{"id":714,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/612\/revisions\/714"}],"wp:attachment":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/media?parent=612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/categories?post=612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/tags?post=612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}