40 - Wednesday, October 18, 1989 - North Shore News

fall BusINESS
Keep pension

payouts, retiring
allowances apart

KEEP PENSION payouts
and retiring allowances sep-
arate in your tax planning,
because Revenue Canada
has separate rules for each.

In my column two weeks ago, I
reviewed your options when you
change jobs: whether you leave
your accumulated pension or take
it with you. Toward the end of the
column, I then summerized rules
that cover retiring allowances.

To clarify, here are the pertinent
tax rules for each:

Lurap sum pension payout: You
may take the cash; up to 30 per
cent tax will be withheld and the
entire amount will be added to
your income for the year and tax-
ed.

Or you may roll the money into
your own RRSP — without limit
or other tax consequences.

Retiring allowance or severance
pay: You may take the cash; up to
30 per cent tax will be withheld
and the entire amount will be add-
ed to your income for the year and
taxed.

Or you may roll some or all of
the money into your own RRSP —
but the amount is limited by the
number of years that (a) you
worked for the company and (b)
any company pension was vested
in you. Even though the money
goes into an RRSP, you might stil!

dollars
and sense
Michael Grenby

have to pay the alternative mini-
mum tax (AMT). .

Note that proposed pension and
RRSP changes will have NO effect
on the preceding (not lump sum)
pension payments from being put
into an RRSP.

een

You get what you pay for. So
don’t expect more from Canada
Savings Bonds than they are
prepared to give.

See CSBs
Page 42

At Royal Trust,
nothing we do is average.

It's simple, really. We know that there is no such
thing as an average client.

Whether you have a chequing account,
art RRSP, or a sophisticated investment
portfolio, you'll receive above-average
advice and service from the profes-
sionals at Royal Trust.

Find out what custom-tailored
advice and service can do for you.

Visit us at our new location on

the corner of Lonsdale and 16th

Avenue in North Vancouver.
Royal Trust

1557 Lonsdale Avenue
North Vancouver, B.C.
984-4466

==> ROYAL

= TRUST
Where Advice Comes First

At*+ Credit Rating

Foster Parent Week: October 15°21.

Foster parents are warm, everyday people who provide a caring,
stable home for someone else’s child on a temporary basis.

Creating such an environment is a challenge that
takes commitment and dedication.

That’s why we're dedicating October 15-21 to all
foster parents.

All over the country, we're celebrating the partnerships
that have formed between foster parents, social workers,
government and the community to provide the care foster
children require.

So, to the thousands of special people who have
what it takes to be a foster parent. A thousand thanks.

Foster Care

d) British Columbia

1-800-663-9999

= thy Province of British Columtia
Ministry of Social Services and Housing
Honourable Claude Richmond, Minister