Invesco Canada blog

Insights, commentary and investing expertise

Tax and estate planning: How do fund distributions affect ACB?


October 5, 2021
Subject | Tax & Estate

Most investors who hold funds (e.g., mutual funds and exchange-traded funds) in non-registered accounts are familiar with how purchases and redemptions affect their adjusted cost base (ACB). However, many are not aware of how distributions affect their ACB. Distributions can impact an investor’s ACB depending  on the income characterization of those distributions and whether they are reinvested or paid out in cash.

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Tax and estate planning: What you need to know about gifting to family members (Part three)


August 12, 2021
Subject | Tax & Estate

Our previous two blog posts talked about income tax implications when gifting to spouses and adult children. While the income tax implications are significant, the non-tax considerations outlined below may be just as important to keep in mind when making a gift. As always, please consult your advisors and/or other professionals regarding your personal situation.

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Federal Budget 2021: Personal Income Tax Measures


April 23, 2021
Subject | Tax & Estate

This is a three-part series focused on the 2021 Federal Budget. In this series, we’ll cover Personal Income Tax Measures, Business Income Tax Measures, and Sales and Excise Tax Measures, International Tax Measures & Other Measures. We’ll first review the tax-specific measures and then summarize the non-tax-specific measures.

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RESP withdrawals: basic rules and strategic considerations


September 24, 2020
Subject | Tax & Estate

A registered education savings plan (RESP) is an effective vehicle for funding post-secondary education expenses, although the complex withdrawal rules can be confusing. Parents with children who are currently attending or who will be pursuing post-secondary education want to make sure tuition and living expenses are well funded through RESP withdrawals. Parents whose children have already completed their post-secondary education or who have decided not to pursue post-secondary education at all, want to wind down the RESP in the most tax-efficient way. In this article, we go back to basics and review the three types of withdrawals available from an RESP, along with offering some strategic considerations when making a withdrawal.

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Locked-in plans: Types of plans and unlocking options


July 22, 2020
Subject | Tax & Estate

Picking up from last month’s blog post, let’s continue our look at locked-in plans. Similar to Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs), locked-in plans also consist of pre-retirement plans and post-retirement plans. In addition, specific rules relate to unlocking amounts from these plans.

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Locked-in plans: understanding the basics


June 23, 2020
Subject | Tax & Estate

This is a three-part series focused on locked-in plans. In this series, you’ll learn the basics to help clients with these less-understood plans, explore pre-retirement and post-retirement plans and unlocking options, and get an overview of issues surrounding beneficiaries and creditors. Let’s first understand the basics in this part.

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Planning strategies for Registered Retirement Income Funds


April 15, 2020
Subject | Tax & Estate

The 25 per cent reduction in mandatory Registered Retirement Income Fund (RRIF) minimums for 2020 was one of a handful of tax relief measures the Canadian federal government implemented as part of its COVID-19 economic stimulus. The government has made similar changes in the past, with the RRIF minimums temporarily reduced by 25 per cent in 2008 amid the global financial crisis. RRIF minimums also came into focus in 2015, with the government lowering the prescribed factors it uses to calculate minimum withdrawals. Reducing RRIF minimums is aimed at increasing financial longevity for individuals in retirement who are living longer. The government has also changed the age at which Registered Retirement Savings Plans (RRSPs) mature several times over the years. Originally set at age 71, it changed to age 69 in 1996 and changed back to age 71 in 2007.

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