As expected, the government is moving forward with a plan to delay the age at which Canadians can start receiving Old Age Security and Guaranteed Income Supplement payments from 65 to 67.  The change will be phased in so that anyone over 54 years old today will not be affected, and Canadians under 50 will not see OAS payments until they turn 67.  Those between 50 and 54 can start collection between age 65 and 67.

Source: Government of Canada, Economic Action Plan 2012

Option to Defer the OAS Pension

The budget papers state that Canadians are living longer and may prefer to work longer and as a result, the government believes that the OAS program should reflect this new reality and provide the option for individuals to work longer, defer OAS and receive higher retirements benefits.

As a result, beginning on July 1, 2013, the changes provide that you will be allowed to voluntarily defer taking your OAS pension, for up to five years, and receive a higher, actuarially adjusted, annual pension as a result.  The adjusted pension will be calculated on an actuarially neutral basis, just like it is with CPP, which means earliest age of eligibility or defer it to a later year.

A TFSA cannot be held jointly with another person.  It is registered with Canada Revenue Agency to the individual.

For a short-term savings solution, we can offer an interest rate of 2.25% in a tax free savings account.    There is no fee for deposits and withdrawals and no minimum balance.  Additional contributions are as easy as an online transfer, a phone call or mailing a cheque.

If you would like to invest with tax free growth for long term, the tax free savings plan allows a wide variety of investment options including mutual funds from low risk to high risk.  If you would like to consider other options available, please contact our office.  If you have already opened a tax free savings account, but would like a higher interest rate or would like to move from a Tax Free Savings Account to a Tax Free Savings Plan, our office can prepare the transfer paperwork and process the paperwork for you.

For those savvy investors who have already maximized their tax free savings account, and are looking for a high interest savings account, contact our office to find out more of what’s available.

Contact the staff at CIC Financial Group to get started today.

 For the January semester you can receive a maximum grant of:

-        $800 for university and college degree students

-        $365 for college diploma and certificate students

 The deadline for applying for this new grant for the January semester is March 31, 2012.  If you already receive OSAP, you do not need to apply.  The grant will already have been applied for you with your OSAP application.  The grant will not be retroactive to semesters starting before January 2012.

 To qualify:

-        you’re a full-time student at a public college or university in Ontario

-        you’re in a first entry program — that is a program you applied to and entered directly from high

          school

-        it’s been less than four years since you left high school

-        your family* gross income is $160,000 or less

-        your parent(s) must have filed their 2010 tax returns

-        you’re a Canadian citizen and an Ontario resident

To apply, you will need:

-        Your OSAP access number

-        Your social insurance number

-        Your parent(s) date(s) of birth

-        Your family* combined net income (line 150)

 * Family refers to spouses (married or common-law) or custodial parent.

If you have any questions while entering the information on your application, please click on the FAQ link below:

https://osap.gov.on.ca/OSAPPortal/en/PostsecondaryEducation/Tuition/FAQ/index.htm

If you have questions that are not answered by the link above, please call the OSAP hotline

1-888-449-4478

Let’s get started.  Click on the link below:

https://osap.gov.on.ca/OSAPSecurityWeb/public/login.xhtml?lang=en

If you don’t have an OSAP access number, click on “New User Registration” and fill in the requested information to receive your OSAP Access Number.

Once you complete registration, an access number will be given to you.

 If you have an access number, enter your access number and password to sign in.

Click on “Log in”

Click the radio button to select the “New 30% off Ontario Tuition”.

Click “Next”

Click on “Start an OTG app”.

On the school information section, enter the name of the college or university you are attending using the drop down box, campus location and your student identification number.  Click next and save.

Enter your program name using the search engine and drop down box and course load percentage.  Click next and save.

Enter your citizenship and residency information.  Click next and save.

Confirm your social insurance number, first name, last name, date of birth and gender.  Enter your address and phone number.  Confirm your mailing address and residence are the same.  Confirm your language of correspondence, emails about changes to application and email address.

Confirm last month and year of high school.  If you have your Ontario Education Number, enter it.  Your Ontario Education Number is a nine digit number that is assigned to all elementary and secondary school students and is usually included on all correspondence pertaining to that person.  If you do not have the information available, continue to the next field.

Confirm release of personal information to a parent or spouse and enter their name and date of birth.

Important:  Under parent information, if parents are separated or divorced, make sure to specify which parent the applicant is living with and fill in the income from line 150 of his/her 2010 tax return.  A student is eligible if the parents combined income (if parents are together by marriage or common-law) is less than $160,000.

Click to submit once completed.

Print the form for parent(s) and applicant.  Parent(s) must sign the parent form and applicant must sign the applicant form.

Logout

Once signed, fax to 807-343-7278

Or mail to:

Student Financial Assistance Branch

Ministry of Training, Colleges & Universities

PO Box 4500

189 Red River Road, 4^th Floor

Thunder Bay, ON  P7B 6G9

Grants should be received within 4 to 6 weeks after the signed forms have been submitted.

If you require a summer semester in 2012, you must apply for the tuition grant by July 16, 2012.

To receive the credit for the September semester, OSAP will work with colleges and universities to have the 30% off tuition deducted before students receive their bill for tuition.

Please refer below for the annual maximums.  Starting in September 2012, the grant pays:

-         $1,600 a year for students in a degree program at a college or university

-         $730 a year for students in a certificate or diploma program at a college

Canada Revenue Agency

Please join us for our

Open House Week

October 17th – October 21st

4pm – 8pm

at our new Ancaster location

114 Wilson St. W.

Parking is available at the back of the building.

Hope to see you there.

A Registered Disabilities Savings Plan is a Canada wide matched savings plan specifically for people with disabilities.  If you have already qualified for the Disability Tax Credit and are under age 60 then you are eligible. If you do not have the Disability Tax Credit yet, you may still be eligible. Click here for more details.

http://www.cra-arc.gc.ca/disability/

The main reason to open a REGISTERED DISABILITY SAVINGS PLAN is to assist in saving for the future.  The federal government will contribute as much as $90,000 to it.  While your savings and grant money is within the REGISTERED DISABILITY SAVINGS PLAN, income taxes do not have to be paid and provincial government disability benefits are not lost. 

The REGISTERED DISABILITY SAVINGS PLAN is exempt from most provincial disability and income assistance benefits.  It doesn’t get clawed back and it doesn’t reduce disability benefits payments.  Federal government benefits such as the Canada Pension Plan, Disability Benefits, Old Age Security and Guaranteed Income Supplement are also not affected. 

Once withdrawn, there are no restrictions on how the money can be spent or how much can be withdrawn without affecting your benefits.  The income that you earn on your savings in a REGISTERED DISABILITY SAVINGS PLAN is tax deferred.  You only have to pay tax when you make withdrawals from your REGISTERED DISABILITY SAVINGS PLAN.  And you pay tax only on the government contributions and the investment income in your REGISTERED DISABILITY SAVINGS PLAN.  You don’t pay tax on the money that you have contributed. 

As part of this savings plan, the federal government will put the Canada Disability Savings Bond of $1,000.00 a year for 20 years into the plan for people living on a low-income of less than $23,855.  For people living on an income between $23,855 and $40,970, a partial bond can still be received.    The federal government will contribute up to $3,500 per year to your REGISTERED DISABILITY SAVINGS PLAN through the Canada Disability Savings Grant program with contribution matching of up to $3 per $1 contributed. 

As of January 2011, the Carry Forward Provision has been put in place.  If you were unable to open an REGISTERED DISABILITY SAVINGS PLAN or unaware of the program prior to 2011, and would like to make contributions for 2008, 2009, 2010, as well as 2011, the grant and bond which would have been paid in those years will automatically be calculated and paid into the plan.    This means people opening a REGISTERED DISABILITY SAVINGS PLAN in 2011 can qualify (based on income) for up to $4,000 in Canada Disability Savings Bond and up to $10,500 in Canada Disability Savings Grant.

As of July 2011, the RRSP/RRIF Rollover Provision also will be put in place.  This new provision will permit parents and grandparents to rollover RRSP and RRIFs at death, to the REGISTERED DISABILITY SAVINGS PLANs of financially dependent children and grandchildren, on a tax deferred basis.

Please contact us for specific details on how this valuable program can benefit you and your family.