Effective November 27, 2021, the deferred sales charge and low load sales charge purchase options will no longer be available for purchase on Sun Life Global Investments mutual funds. Switches between funds of the same sales charge purchase option will be permitted.

Annuitization

Pre-1990 annuities

If the policyholder purchases a prescribed annuity and receives at least one payment by December 31 of a reporting year, any unreported taxable policy gain can be spread over the income period.

Post-1989 annuities

Income elected BEFORE the accrued income calculation date

If a prescribed annuity is purchased before the anniversary date and at least one payment is received before December 31 that year, any unreported gain realized since the last anniversary can be spread over the income period. This income accrued is not reported on a T5 (R3) for that year.

Income elected AFTER the accrued income calculation date

If a prescribed annuity is purchased on or after the anniversary date and at least one payment is received before December 31 of the following year, the unreported gain earned after the anniversary can be spread over the income period. Since the purchase date is after the date the accrued income is calculated, the accrued income must be reported on a T5 (R3) for the year of annuitization.