A life annuity is a tax efficient way to guarantee income for life. Using a “prescibed, non-registered” annuity can spread the taxable income from the annuity over the rest of your life. The formula that the Canada Revenue Agency uses to calculate this taxable portion is changing on January 1, 2017. There are significant tax incentives if you purchase a prescribed life annuity before these tax changes are put in place.
To what degree will the tax changes impart your taxable income? You can review the chart below for an idea or Email me today at firstname.lastname@example.org to find out more details how this can affect for you specifically.