The Knights of Columbus announces the introduction of the Tax-Free Savings Account (TFSA) for our Canadian members and their wives effective January 1, 2009.
The Tax-Free Savings Account is a registered savings account that allows Canadian taxpayers to deposit money in a Knights of Columbus annuity and all earnings are income tax-free. Although contributions to the account are not deductible for tax purposes, withdrawals of contributions and earnings from the account are not taxable.
Some of the advantages of a Knights of Columbus Tax-Free Savings Account are:
Guaranteed Safety. We guarantee your principal and a minimum rate of interest. Interest rates in excess of the guaranteed rate are set each quarter by the K of C. (Contact your local agent for current rates and more details.)
Strength and Security. We have more than $14 billion in assets and the highest possible ratings from A.M. Best (A++, Superior) and Standard & Poor’s (AAA, Extremely Strong), two leading rating agencies for insurers. The K of C is also a member of the Insurance Marketplace Standards Association (IMSA), reserved only for those companies that conduct their business by the highest ethical standards.
Income Tax Free Growth. Contributions are made after tax and grow income tax free.
No Administrative Fees*.
Guaranteed Interest. A lifetime minimum interest rate of at least 3 percent.
Flexibility and Choice. Make one lump sum payment each year or make periodic payments throughout the year. Contributions are completely flexible** and there is no obligation to make any future contributions. When you want to begin receiving annuity income, you can choose from a variety of payment options.
* Surrender charges may apply.
** 2009 Canada Revenue Agency maximum contribution limit is $5,000.