Catholic Mission In Canada

Think about it: If you invest $10,000 of your RRIF withdrawal into a charitable gift annuity, you will receive:

• a large charitable tax receipt, which will help offset the tax owed on your RRIF withdrawal
  
  
• a high rate of income 4.99 - 10.0 per cent, guaranteed for the rest of your life
  
  
• 100 per cent of your annuity income tax-free, and the satisfaction of knowing you are helping our Canadian Catholic missionaries.

Each year, beginning with the year in which individuals turn 72, they must withdraw a minimum percentage of the value of their RRIF, as retirement income. This percentage starts at 7.48% the first year a minimum withdrawal is required.

Take a close look at these examples:

Mr. Charles Wilson, age 72 years

Charles must make an RRIF redemption of 7.48 per cent or $10,000 in 2012. He is in the 35 per cent tax bracket*, which means he will have to pay a total of $3,500 in taxes for the redemption. The thought of paying so much in taxes on his retirement savings is not pleasant.

Charles decides to take out a charitable gift annuity with Catholic Missions in Canada for $10,000. At 72 years of age, he will receive:

• a charitable tax receipt for $3,017, which, in the 35 per cent bracket will reduce the taxes owing on his mandatory redemption by $1,056. He will now pay $2,444 in taxes.
  
  
• an income rate of 5.37 per cent, or $537 a year, for the rest of his life.
  
  
• 100 per cent of this annual annuity income, tax-free.

Miss Delia Matthews, 78

Delia has a mandatory RRIF withdrawal of 8.33 per cent or $7,850 in 2012. If she is in a 35 per cent tax bracket*, she must pay $2,747 in taxes for the redemption.

Delia decided to take out a charitable gift annuity for $10,000. At 78 years of age, she will receive:

• a charitable tax receipt for $2,839, which will reduce the taxes owing on her mandatory redemption by $994. She will now pay $1,753 in taxes.
  
  
• an income rate of 6.05 per cent, or $605 a year for the rest of her life.
  
  
• 100 per cent of this income tax-free.

Fr. John Boswell, 80

Fr. John has a mandatory RRIF withdrawal of 8.75 per cent or $8,750 in 2012. If he is in a 35 per cent tax bracket*, he must pay $3,063 in taxes for the redemption.

Fr. John decides to take out a charitable gift annuity for $10,000. At 80 years of age, he will receive:

• a charitable tax receipt for $3,579, which will reduce the taxes owing on his mandatory redemption by $1,252. He will now pay $1,811 in taxes.
  
  
• an income rate of 6.75 per cent, or $675 a year for the rest of his life.
  
  
• 100 per cent of this income tax-free.