Subject: Municipal Pension monies
Expert: taxman at centa.com
Date: Friday April 29, 2005
Time: 01:20 PM -0700
QUESTION:
I am going to take the commuted value from my municipal pension
plan,they have acknowledged that they will take 30% of my
commuted value which is $25,000. By taking this money off the top
for the tax year of 20005,would I still have to pay Income tax on
this amount next year? Thank-you
=====================================
david ingram replies:
If you make $40,000 as well this year, you will owe an additional
$6,900 or so because the other $40,000 has used up the low tax
rates.
If you have no other income and just take out the $83,333, you
would get about $2,700 back as a refund.
More than $40,000 will cost you more and less than $40,000 down
to zero will cost you less.
You should read the "Pension Paradigm", a book about commuting
pensions written by Hugh Carter and contributed to by Ralph
Hahmann.
You can get a free copy by phoning the radio program at 9:00 AM
on Sunday morning. Mention I told you to phone and Fred Snyder
will send you a copy of Ralph's book.
Answers to this and other similar questions can be obtained free
on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am
a permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE
talk show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the
internet at
www.600AM.com <http://www.600am.com/>
Call (604) 280-0600 to have your question answered. BC listeners
can also call 1-866-778-0600.
Callers to the show and questioners on this board can also attend
the Thursday Night seminars on finance and making your Canadian
Mortgage Interest deductible.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
Off (604) 980-0321 Fax (604) 980-0325
New email to davidingram at shaw.ca
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as
advice in any particular circumstances. No contract exists
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