Question
Chantal, who is aged forty-four, purchased a TSA consisting of a growth equity segregated fund. She purchased this fund five years ago and she has
Chantal, who is aged forty-four, purchased a TSA consisting of a growth equity segregated fund. She purchased this fund five years ago and she has a 759/100% with regards to maturity and death benefit guarantees. Chantal invested $20,000 when she opened the contract. Its present market value is now $30,000. She needs to liquidate the entire contract to deal with an unforeseen emergency expense.
What will be the tax implications of closing the contract and cashing in the entire proceeds?
Select one:
Chantal will not have to pay any taxes on the withdrawal.
Chantal will have to declare $30,000 as income.
Chantal will have to declare $10,000 as capital gains
The insurer will withhold $9,000 as required by CRA.
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