MONTRÉAL, Aug. 27, 2020 /CNW Telbec/ - In response to questions from shareholders received in recent weeks, the Fonds de solidarité FTQ would like to remind shareholders of the tax rules governing eligibility for tax credits following a partial or total share redemption under certain criteria.
To encourage workers to save for retirement and to support jobs and economic development, the governments of Québec and Canada each grant a 15% tax credit to savers who purchase to Class A shares of the Fonds. Tax credits are capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares.
As provided in the relevant legislation and set out in the Short Form Prospectus (section 8.1, page 16 and Schedule 1, page 24), shareholders can no longer benefit from the tax credits associated with the acquisition of Fonds shares following a partial or total redemption of shares made under retirement and other criteria:
- Retirement between ages 60-64 and beneficiary of a pension from the Québec Pension Plan or an equivalent plan;
- Retirement between ages 55-64 and beneficiary of retirement benefits;
- Retirement between ages 50-64 as a result of termination of employment;
- Phased retirement between ages 50-64;
- Retirement between ages 45-54 and beneficiary of retirement benefits under an employer's registered pension plan; and
- Severe and prolonged disability (physical or mental) resulting in permanent unfitness for work.
For more information in this regard, see the Short Form Prospectus.
Shareholders are ultimately responsible for determining the tax impact of a redemption and ensuring that their contributions to the Fonds de solidarité FTQ are eligible for tax credits and RRSP deductions based on their taxation status.
For more information on the consequences of a share redemption on future eligibility for tax credits, shareholders may contact Saving Services from Monday to Friday, 8:30 a.m. to 5:00 p.m. at 1 800 567-3663 (toll free).
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a capital development fund that channels the savings of Quebecers into investments. With net assets of $13.8 billion as at May 31, 2020, the Fonds has helped create and protect 221,267 jobs. The Fonds has 3,329 partner companies and 707,935 shareholders-savers.
Please read the prospectus before buying shares of the Fonds de solidarité FTQ. Copies of the prospectus may be obtained online at fondsftq.com, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed; their value changes and past performance may not be repeated.
SOURCE Fonds de solidarité FTQ
For further information: media representatives only: Patrick McQuilken, Senior Advisor, Media Relations and Communications, Fonds de solidarité FTQ, Mobile: 514 703-5587, Email: [email protected]; Information for shareholders: Saving Services, Fonds de solidarité FTQ, Toll free (Québec only): 1 800 567-3663, Other provinces and international: 514 383-3663