Mere ne a ena Et a 1991 RRSP deduction limits ‘IE you were a member of a registered pension plan or deferred profit sharing. plan during 1990, your 1991 RRSP deduction limit is the lesser of 18% of your 1990 carned income of $11,500 minus your 1990 pension adjustment. Your pension adjustment is found in box 52 of your 1990 T4 Supplementary from your employer. In addition, in the fall of 1991, the government forwarded this information to all taxpayers. There are also a number of special deposits which can be made to RRSPs in addition to your RRSP contribution: *Lump sum transfers — you can transfer lump. sums DIRECTLY from a Registered - Pension Plan or a Deferred Profit Sharing Plan (DPSP) to your RRSP. You must complete a Revenue Canada form. — *RRIF (Registered Retirement Income Fund) payments in excess of minimum — until the : end of the calendar year in which you turn. 71, you can transfer DIRECTLY to an RRSP in your own name up to 100% of any payment from your RRIF in excess of the minimum ‘mandatory payment amount for the year, using Revenue Canada form T2030. ‘eRetiring allowances — a ump sum or sums paid to you by your employer, at or after your termination, in recognition of your loss of employment. Accu- mulated sick leave credits paid qualify under this definition. The portion of a retinng allowance eligible for sheltering in’ your ‘own RRSP can either be trans- ferred directly (with no income tax deducted), or up to 100% can be contributed in the year of receipt or within 60 days there- after. No portion of a retiring allowance can go to an RRSP in your spouse’s name. ' The maximum retiring allow- ance which can be sheltered is: * $2,000 for each full or partial. calendar year of service with the employer, plus * an additional $1,500 for each full or partial calendar year of service in 1988 or prior years in which you were not a member of a pension plan or Deferred Profit Sharing Plan with your employer, or for years in respect of which your employer’s contri- butions to such plans have not vested in you. Terrace Review — Wednesday, February 5, 1992 i | It’s not too late for a marriage contract By ROZANNE RESZEL, C.A. If you're like most people, you probably think of a marriage contract as a precursor to di- vorce, Stlpulating what hap- pens to assets if a marriage dissolves is certainly one pur- pose of a marriage contract, and a highly publicized one too. But it, doesn’t have to be the only purpqse.. For many couples who are al- ready married or are con- templating tying the knot, a marriage contract is, in fact, a framework for their marriage, not a _ blueprint for divorce. . The best way to make your retirement income ~ meet your needs—today and tomorrow Should you die before your RRIF is Generally, that framework ts a financtal one — and with good reason, Disagreements over money are a major factor in divorce. While signinga marriage con- tract isnot for everyone, the process of drawing up a mar- riage contract gives you and your partner the chance to talk about money, to identify com- mon ground and to pinpoint areas of potential conflict. Ifyou can’t work out arrange- ments that are fair and mutually agreeable before the -ceremony, what are your chan- ‘ces of doing so afterwards? Convert your RRSP. savings into a credit union RRIF and provide yourself with a regular income, while continuing to maintain maximum control over your tax- sheltered retirement investments. Flexibility Plus The. flexibility of the RRIF makes itthe ideal investment to meet a wide variety of income requirements. ’ .¢ Current Income - Income payments can begin immediately, or commence one year after the plan is opened, with no maximum limit. ; -@ Inflation Protection - A minimum. payment option lets you start smal! and - increase yearly. ; _ © Protection for Spouse/Dependents - ’ Stretch your RRIF out untit you =~ or your spouse reach 90. The contents of your marriage contract can be whatever you and your partner think ap- propriate. For example, it might specily whether you will both pay an equal share towards household expenses. Or, it might deal with investments — if one partner is conservative and the other a risk-taker, will you have joint or separate sav- -. ings and investments? Would each be willing to support an aging parent? When one spouse, generally the wife, takes time out from paid employment to raise depleted, payments can transfer to your _spouse if he or she is your designated beneficiary, or the remaining funds can be distributed according to your will. ' © Emergency Fund - Make lump sum withdrawals for any purpose, including financial emergencies. © Tax Shelter - Take out the minimum taxable income permitted by law, and your investments continue to grow, free of tax, while they remain in the RRIF. For the complete RRIF story, see. your ae | . s * . credit union today Let us review with you'the various s types of: RRIFs we have available, along with our _ competitive rates. Together, we can plan _ your retirement financial future. Come in and see us soon. "TERRACE & DISTRICT CREDIT UNION 4650 Lazelle Ave., Terrace Phone 635-7282 8"Hands & Globe" isa registered certification mark of the World Council of Credit Unions and Is used under license. children, what will happen t to her ability to accumulate as- sets? What would happen to business assets if the marriage fails? If you're already married, but don’t have a contract, you still - may want to consider getting one. Circumstances change throughout the course of any marriage. You may decide you want to go back to school, for example. If your spouse agrees to support you during that period, what obligation, if any, do you have to pay him or her cont'd on pg.13 ’ SW freee he a