If you hold investments within a Non-Registered (NREG) account, you may experience a capital gain or loss or other investment income (dividend or interest income). Investment managers may distribute special payments to investors in the underlying funds (including Sun Life’s segregated funds) for various reasons. By being aware of potential tax impacts from investments with your Non‑Registered account, you can make informed investment and tax planning decisions.

How a distribution may affect you

A distribution may result in capital gains or other investment income (dividend or interest income) for plan members if you had money in the specified segregated fund within a Non‑Registered (taxable) plan as of the distribution date(s). You may have to pay tax on this distribution for the applicable tax year. We recommend speaking with a tax professional for personalized guidance.

The term 'distribution' doesn't mean that income is paid out to you. This is a transaction that is linked directly to the fund and reflected on your tax slip.

If you have money in the segregated fund within Registered (non‑taxable) plan(s) that your employer may also offer, the distribution won’t impact your Registered plan(s) investments.