If You're Retiring With An RRSP, You Need To Watch This

[@kesho79]

Absolutely a great video on RRSP/RIF , Thank you for taking time to spread knowledge .

[@ParallelWealth]

My pleasure!

[@vm6824]

Every time I hear "income split", I want to cry as a happily single woman who gets no breaks. However, great upload. I learned quite a bit. Thanks!

[@Awol991]

The state has a heavy bias against single people. There should an equal rights lawsuit in there somewhere.

[@maxineporter8848]

I hear you. I remember how my mom's income shot up once my father passed. She paid far more to CRA than she ever lived on.

[@master15951]

single income u can claim GIS depend how much u make ?

[@jimclarence5441]

Even more unfair is because I have saved my money, invested well, I am no eligible for Old Age Pension because I make too much money. By the way, I am a happy single guy

[@captcruel]

@@jimclarence5441 I would rather have more income and be ineligible than have less and old age, it may seem unfair.....

[@suzierice9730]

Great video as always. I will have to watch it again and take notes. I really appreciate you passing along your knowledge. Thanks Adam.

[@ParallelWealth]

Glad it was helpful!

[@dalegribble60]

Excellent video! I've been planning on retiring for over a year now and read up on everything I possibly could and actually wowed my financial planner. The one thing I didn't know was being able to put a rrif BACK into a rrsp. Ya learned me something there. Oh, and a first year average tax rate of 10-12%? I wish......I have to cut back on expenses BIG time to get to that rate. Thanks again for this info!

[@carolharvey2824]

Adam, you are so informative and gentle . Thanks so much for your much appreciated guidance. Please keep it up. Thanks again.

[@IREFUSE9]

These videos are just so incredibly helpful. Thank you Adam!

[@RobertBarker-y5w]

Wow, excellent video. You communicated clearly and answered some of the questions I had.

[@tinayoga8844]

My approach is to wait until December to pull from my RRSP. I buy a tax program. I then enter my taxable income and see how much room I have before the next tax bracket. Then that is what I pull from my RRSP. This way I can draw down my RRSP at a lower tax rate. Because I pull my money out of the RRSP in December the withholding amount is for a short period of time.

[@waffles1ca]

EY has a personal tax calculator for which you can enter income and it will display your tax rate for your province. Could help you.

[@domshiu157]

So does wealthsimple

[@macdaddymgiarc]

I am retiring in another year and plan to do the same thing. I will have a DB pension and I plan on analyzing all my total income by December of the year and then decide what is the "top up" needed from the RRSP to maximize my RRSP meltdown but at the same time keep me out of a higher tax bracket. I wont know what that amount is until the end of the tax year. If I only do one withdraw a year, that $50 fee to withdraw is not much in the grand scheme of things....

[@kbc213700]

Brilliant. Thanks for the info!

[@James_48]

I will take the RRIF minimum on January 2nd and withdraw the rest of my meltdown amount on December 31st.

[@nikkininedoor1480]

Good timing, as I just met with my wealth manager today regarding my portfolio now that I am retired on this very same topic! Thank you for another great, comprehensive and helpful video!

[@jpx9190]

Thank you for the insight. In order for one to take the best decision, it would have been nice to cover as well the impact of having a RRSP or RRIF on the CPP.

[@waffles1ca]

Thank you, great timely information. My wife is looking to draw income from her rrsp for the next 7 years until he reaches 70 and starts CPP and OAS , we are thinking of converting about 28% of the RRSP into a rrif to provide predictable monthly income through age 70 as well draw the occasional lump sum from the RRSP to prevent the RRSP from growing much more. Your video is helpful.

[@AlokeSurin]

As an immigrant who came to this country just about 24 years ago in my late forties and who did not have much luck in finding stable well paying work for quite a long time, I am in the position of just having to work for as long as I can. Till recently I had always been a little confused about the intricacies of the RRSP and RRIF plans and the mysterious "holding tax". Thanks for clarifying these concepts in a clear and comprehensive manner and also for that little nugget of info regarding putting money back from the RRIF to RRSP in some circumstances! Great video and Ireally did learn something new today, thanks.🙂

[@dawndevereux263]

Great video! Another possible reason to consolidate accounts is potential reduction in management fees for larger balances depending on holdings.

[@TerriWiebe-hq3rz]

I really enjoy your videos. I even sometimes go back and view them again and get more out of it that i missed the first time.

[@ParallelWealth]

I appreciate that!

[@chrisjeanneret5091]

Good timing, I was reviewing this topic as part of a tax course I am taking. Starting to make more sense when I looked into the evolution of the plans (originally only pensions/annuities, then RRSP's in the 50's, RRIF's in the 70's, early/late CPP options in the 80's, TFSA's in the 2000's).

[@ramspace]

Excellent briefing. Thank you.

[@Chucku153]

FANTASTIC VIDEO!!!

[@robertbowden909]

Probably one of Adam''s best videos is a while, but it can still go further. Could discuss what happens if you have self-directed accounts or how do you actually move money from a RIF to and chequng account, either lump sum or on a regular basis. Is it best to have a dedicated tax holding account and the need to pay quarterly tax installments?

[@brucegarrod8674]

Timely and excellent video. I was working on my first RRIF withdrawal the same day i watched.. I decided to make more than one withdrawal under $15K to limit withholding tax. I'd rather owe than be owed at tax time.

[@maxineporter8848]

Better for you to keep your $ and pay later than have it refunded to you a year after it was paid.

[@annehenderson462]

So informative and helpful. Thank you.

[@RavinderSingh-hy7iz]

Thank you Adam. Good information and you also explained everything very clearly.

[@ParallelWealth]

Glad you enjoyed it!

[@jamesherchel5827]

Very good advice thanks so much.

[@marvinmartian7406]

The RIF minimum withdrawal amount is calculated from the portfolio's balance as of the end of the previous year. If the value of the securities held in the RIF year over year increases or declines, the the minimum withdrawal amount will reflect this valuation change also. 1/(90-age) x RRIF market value.

[@r2wchuckle]

Thank you, your discussion was very helpful.

[@pargolf3158]

Great video. So let's say you want to take out an additional $15,000 ( over and above the RRIF minimum), you would pay 30% = $4,500. What if you made 3 withdrawals on 3 separate days of $4,999.99? Would the bank then only withhold 10% on each withdrawal ( so in effect you would only pay $1,500 instead of $4,500?). If you did this 1st week of Jan you would have use of the $3,000 difference until next April 30th. Is this correct? or does the bank do an additional adjustment when you take out the 2nd $4,999.99 and an additional adjustment on the 3rd $4,999.99 withdrawal to ensure 30% withdrawal tax has been kept on $15K withdrawn in the space of a week?

[@manjitdhillon4368]

Thank you for your advise

[@MegsCarpentry-lovedogs]

Adam,, thanks for letting us know that investments in rrsp do not change when under the different umbrella of a rrif...no tax consequences etc....what a relief! My rrsp is all investment vehicles. Thank you again from PEI chiming in. :)

[@woojimful]

Thank you for another very informative video!

[@DecipherLoop]

Can you please do a video on retiring with debt... maybe you have assets but do still have debt ... how best to decide what to do... liquidate pay off debt or some other plan

[@murraytown4]

I wish I were rich enough to forget about an account with $25K in it! I converted my RRSP to a RRIF last year and it was super simple. My monthly RRIF income is deposited directly into my account. I did make the mistake of realizing I had a small amount of RRSP room after converting my entire RRSP into the RRIF. So I opened a new RRSP, now I have an RRSP and a RRIF. Interestingly, I was only 58 last year so did not claim the pension tax credit. In its review of my file, CRA gave me the credit. I’m waiting for the other shoe to drop and CRA clawing that back.

[@peternasson7711]

Great video…thank you!

[@MamaGnesL]

Thank you so much, i need to learn since im close to my retirement👍❤️

[@davidwegner9690]

Thanks Adam! Great review!

[@ParallelWealth]

Glad you liked it!

[@acdatz6222]

Great info, thanks

[@mrslcom]

When you make a RRSP or RRIF withdrawal, the withholding tax must be part of the withdrawal. You cannot pay the withholding tax separately if you have available cash elsewhere. This means you are forced to sell more of your funds in order to pay this tax and then get a tax refund next year. This seems unfair especially if you are forced to sell your investments during a market downturn.

[@Grimenoughtomaketherobotcry]

You should, as a senior, have a fairly large portion of your investments in bonds/GIC's. Draw from these and replenish from your equities when equities are up. Don't draw directly from your equities and you won't get stung by selling when the market is down.

[@paulmarshall4794]

Good video, I didn't know about being under 71 and being able to convert a RRIF back to an RRSP. Something that is always good to know but I am hoping I am not going to go back.

[@ParallelWealth]

And LIF back to LIRA too - just completed one for a client. But you are forced to take min amount for the year.

[@waynebinky]

As you approach 71, the idea of transferring it back to an RRSP sounds crazy to me. At 72 you must convert it to a RIFF anyways. Maybe I'm missing something here.

[@paulmarshall4794]

@@waynebinky I converted my RRSP at age 55. So anyone who did like I did and then decides to go back to work, they may not want the income they have to take from a RRIF and income from a job so they could decide to convert back. You are right, I don't think someone who is 70 and is only months away from turning 71 would want to do this but for someone younger they might.

[@johnwillock6787]

Adam. This might be semantics but I keep hearing about the RRSP meltdown strategy, but honestly might it be better served to call it a RRSP/RRIF strategy? Also for anyone watching Adam is always mentioning planning for retirement, and it absolute needs to be done, at least 5 years in advance. Planners do much more now than help you just grow your money, or they should.

[@Sofaguy101]

Good job Adam..You certainly cleared up a few hiccups in my cluttered mind..

[@ParallelWealth]

Glad to help

[@BlaineLang]

Turning 65 in 2025, and still planning on working until 70. Is it a good strategy to create a RRIF with say $25,000 (from a RRSP) in 2024 and then withdrawl $2000 from the RRIF in 2025 and claim the pension credit. Even if my taxable income is $100,000, that $2000 would be effectively tax free right?

[@tylerarnold943]

I'm 45 and had 45k in my rrsp. Switched to high risk. It was around 39k now it's about 41k. Cmon the next 15 years be kind to daddy

[@OrangeismyNewGreen]

Great info Adam, this will definitely help us, I'll be making some calculation 😉👍🏻 Thanks

[@tessiechanp]

Hi Adam, could you do a video on RRSP deduction limit and Unused RRSP contributions on Notice of assessment?

[@ParallelWealth]

Yes I can

[@buckw65]

My favourite video so far

[@ParallelWealth]

Thanks, glad you enjoyed it

[@pamelasimons]

I enjoy your videos. I work with a similar client base who may be looking at investment or snowbird lifestyle properties. As I learn from your videos - I think about how I may help my own clients better! Pamela

[@kmitcher]

Hi Adam, this may be a dumb question but if the RRSP contains stocks, ETF’s, etc, how do you draw down the monthly amount after converted to a RIFF? I assume you have to sell off a number of shares each month so the sell amount aligns up to the financial plan amount? Thx!

[@master15951]

good Question

[@paulmarshall4794]

I'm currently drawing money from my RRIF. I am invested in stocks and ETFs that generate monthly dividend income. The dividend income is more than the amount I withdraw each month so I do not need to sell any investments to get my monthly payment. However, if you are not generating enough cash, then yes you would have to sell shares to have the cash to meet your monthly payment.

[@kmitcher]

@@paulmarshall4794thx Paul, appreciate the response and clarification.

[@dansu3135]

Good video, can you double check: if you are over 65, line 12900 RRSP gives you the $2000 tax credit at line 31400....pretty sure !

[@phyllisnaccarato5313]

The biggest mistake was buying RRSP'S. Better to tell kids to put in TFSA and invest. Now Trudeau changed to tax base to 15%, It used to be $500. taken off my $5000.RRSP withdrawal. Now it is $750. off my $5,000. RRSP withdrawal I would never take money from a RIF and put it back into an RRSP.

[@petrapiciacchia2456]

I so confused.

[@dianetownsend9813]

If RRSP partially converted to a RRIF and withdraw 2K/year there is a pension deduction that is NOT then taxed. Small savings but that's $ in my pocket not the gov'ts.

[@nobuddy2012]

To further complicate things I have "locked in" RRSP's which have to be converted to LIRA's which have a minimum and a maximum.

[@ParallelWealth]

Frustrating.

[@Lucy-gd1zm]

Hello, thank you very much for very helpful video. Due to health reasons, Im retired since 2023. I am turning 62 this year. I have a little RRSP saved , could you please tell me if I can transfer my RRSP to RIF? I have no income except for small amount from company pension and cpp. Thank you very much. Your help is greatly appreciated

[@Viper6-MotoVlogger]

Very informative idea.

[@macker0077]

Good info. as usual Adam. I just set up a RIF and moved my RRSP holdings into it. Now I get a monthly withdrawal done automatically and for free, deposited into my chequing account vs, paying a $25 (plus tax) fee to do withdrawals manually from my RRSP. The bank allows me to take out the first $15K without tax withholding, then after that, withholds 30% per withdrawal. As you noted in your video, this year will see me with a larger than normal tax refund, as the RRSP withdrawals had tax withheld at 30% on each of my manual withdrawals. Hopefully a little less tax taken out this year so I can keep more $$ in my bank....instead of CRA's.

[@realticupisicu]

What bank is charging you a $25 transaction fee for withdrawals from your RRSP?

[@macker0077]

@@realticupisicu TD. They don't charge anything on a RIF account, which I've converted to.

[@realticupisicu]

@macker0077 I have RRSP with TD as well, and I didn't notice they charged me any transaction fee for withdrawing from it.

[@macker0077]

@@realticupisicu Suggest you check your RRSP account. It can either come out of the withdrawl amount OR as a separate charge.

[@jimjackson4256]

You shouldn’t have to rif your rrsp at 71 and withdraw at a set rate. You should be able to leave it in your rrsp and withdraw as needed then pay a big tax when you die if you wish.

[@philcadorette1383]

Hi Adam, great info, appreciate this video ! I am 60 yrs and just retired this year. I have a margin, tfsa and rrsp account. 2/3 my income comes from my margin account from dividends ( not selling anything) and 1/3 comes from dividends ( accumulated all year and put into a cash etf so it makes money while sitting ) from my rrsp. My tfsa is my rainy day fund. What I am doing is melting down my rrsp account into my margin account so I can have more freedom as to what I want . I am moving investments from the rrsp to the margin and the dividends the margin made that year are being used to pay the withholding tax ( 30% , which will end being too much ) so I'll get a refund. I plan to do this only once a year. I will try doing this for the first 2 or 3 years hopefully. What is your opinion? I may at some time have to convert to a rrif and sell investments to pull out the minimum but that day has not arrive.

[@flopyzik3022]

N,uy 16:03

[@Peter-vy5bw]

This is a similar situation to my own where I am living off the dividends from my margin account and melting down my RRSP, moving it into my Margin and TSFA accounts. At age 65 (I am 59), I plan to convert a portion of my RRSP to a RRIF to take advantage of the $2000 pension income tax credit. CPP and OAS will hopefully be deferred until age 70.

[@wcg66]

This is similar to our plan. I’m melting down my RRSP early to transfer into TFSA and non-registered dividend investments. I’m lucky in that my wife has a good defined benefit pension so we can be more aggressive with other investments. I’ll convert the remainder of my RRSP to a RRIF when we decide to have CPP and OAS kick in.

[@victornathaniel996]

I’m 28 and I want to do this before retirement age, is it possible or how is the best way to do this?

[@JazzCatzs]

Thank you ! You’ve explained this so clearly

[@kenwalling2265]

I have a Quebec LIF and I am 65 years old this year, I thought I have a min and max % allowed for withdrawl(around 7% max) so I would need more than 30K in the LIF in order to withdraw $2000k / year to get the pension tax credit ,,,,,so I could not send 2k/year from RRSP to RRIF and withdraw the $2k to get the tax credit

[@edwarddooley4941]

I worked in Australia for 9 years and paid income tax to the ATO, every time I contacted Service Canada, I was repeatedly told that the taxes paid in Australia would go to top up my CPP, when I returned to Canada I learned this was actually a lie.

[@Sean_V56]

You should claim pension from Australia and transfere it to your country account in the country you are living in.

[@longago3649]

There are many "agile ways" to manage your money towards age 71 and after. I am in the lower(est) tax brackets for most income. As the tax brackets creap up it's interesting how you can avoid paying too much tax. You can have different sized RRIFs. You can have a principal one at a higher tax clawback and an auxilliary one at a lower clawback rate. There's the pension amount, your TFSA, taking flexible amounts out of your RRIF instead of the minimum. How many brain cells do you want to put to work? Most of us don't have scads of money in the real world. For us, we appreciate videos that provide insights that the well-to-do married couples may not need to consider. A little knowledge is a dangerous thing. Sufficient knowledge WELL BEFORE you need it makes things much easier.

[@rg4530]

Planning your RRIF is critical to avoiding the tax pitfalls.

[@maxineporter8848]

Also if no survivors for the RRIF, to avoid final taxes on a BIG residual balance. Otherwise, half of it could go to the government, instead of your estate.

[@Lucy-gd1zm]

Also, how RIF works . I need to use the money but I’m don’t know how what to do. Me and my husband have a very limited knowledge of all this things.

[@MrXR77]

After the age of 65 any money taken out of my RRIF will clawback my GIS. Can I apply the 2000 dollar pension income tax credit to prevent the first 2000 dollars from being clawbacked from my GIS???

[@James_48]

I don’t think so but maybe Adam can confirm. You may have to strategize based on your scenario - defer RRIF withdrawals to maximize GIS? Note that any TFSA withdrawals will not impact GIS.

[@alvaronieto7506]

Why the tax can be 10-12% if the first federal tax bracket is 15% plus 10% of Provincial tax(In Alberta). I don't get it.

[@van-Toronto]

Hi, your channel is very helpful, thanks for that.. I am divorced a long time ago, should i check a divorced box or single in the tax return and what are the differences between them? Thanks in advance.

[@donduggan798]

My agent asked me to convert my rep to a rif. Still waiting. She accused me of trying to get her fired. Now I will be

[@Josie401]

I received my first RIFF as lump sum this February after I turned 72 in January. Planning to put into my TFSA. I wonder is it better to draw monthly than yearly. I only want the minimum to last my lifetime.

[@markbernier8434]

If your TFSA isn't maxed out that is the best place for investment money. It is worth paying for a fee for service planner or CPA to make a plan that works for you.

[@ronchenier6496]

Hi great content on all your vids. I will be retireing in May 2024 at 65. my question is can i income split with my partner. She is 58 but has no income does not work. do I have to wait till she is 65? Thanks

[@dalegribble60]

Dang good question! My wife works part time and I'm the main bread winner. I've been afraid I have to pull too much out of my RRIF and watch it dwindle. Income splitting may be the way to go. Hope you find your answer as well as I and happy retirement!

[@johndewhurst3612]

It would be great if people saw theses withdrawal schedules before their 30 yo I tell 20 year olds to invest in TFSA for the first 10 years then when 30 start rrsp that removes one doubling period from your rrsp.

[@AlLeiman]

Thanks for your video. I have a question regarding pension splitting. I am 68 and my spouse is 64 in 2023. If I take out $4,000 in an RRIF IN 2023 and split the RRIF equally at tax time to my spouse would my spouse also get a $2,000 deduction if she is only 64 years of age in 2023.

[@eminbc]

Not sure how the first year rule applies when your birth date is at the end of the year?!

[@Tchairdjian]

Too many words to say a little. It’s pretty simple. Also you don’t need to make a $15,000 lump sum withdrawal from RRSP or RRIF. You can take $5,000 a month over 90 days and the source deduction is only 10%.

[@garthrotor6634]

Very helpful Adam. I do have a follow-up question to your positive response to another query that both a Superannuation pension and a RRIF can be income split. Do both spouses need to be over 65? I am over 65 and plan to convert my RRSP in 2024 to RRIF to income split both my Superannuation pension and RRIF withdrawals with my wife who is not yet 60. Thanks very much.

[@richardli5530]

I have 150k RRSP contribution room. I am contemplating to take 150k from my TFSA and stick into spousal RRSP. This will save me about 45% in tax and my wife, who does not work, can start pulling it out paying 10% after 3 years (2 whole year + 1 week). A return of 35% over 2 years (on a portion anyway) is quite tempting. Other than assuming that I will maintain the same income level in the future, what am I missing here?

[@PaulineBrown-e1v]

Hello: Can you advise on a withdrawal from a LIRA in BC. The pension was a CIBC pension, earned in Alta and moved to a LIRA when I left the company. Now living in BC can I move 50% of the LIRA (I'm 70 years old) to my RRSP? The pension was originally Federal Regulated? Thanks

[@jimcunningham61]

I don’t plan on touching my rrsp for a long time

[@ParallelWealth]

Likely not a great retirment income plan.

[@franktoth7129]

My wife and I are self employed and over 65 and still working, nolonger paying CPP. We are still contributing to our RRSP's. Can we contribute to our RRSP's and move some monies to a RIF and redraw $2000 and still use the Pension income tax credit, even if we are still contribute to out RRSP's. I forgot to say we are not drawing OAS or CPP and do not any other form of pension income.

[@James_48]

Yes you can, so long as you have available RSP contribution room and it is earlier than December 31st of the year you turn 71.

[@davidandrews8007]

Financial management fees are not tax deductible.

[@wheretoretire3315]

What if your RRSP has different currencies? Some of my investments are in USD and some in CAD. Do you need two separate RRIFs for each currency?

[@ilikeshroomgals]

Great video.

[@ParallelWealth]

Thanks!

[@neilbertram1922]

Can you use a spousal RRSP and spousal RRIF to income split during one's working career? Let's say I am putting $10,000 per year into a spousal RRSP, from age 50 to 65. Each year, my spouse transfers that contributed money to her corresponding spousal RRIF. If she takes the minimum withdrawal every January, there is neither withholding tax nor attribution. Right? By the time my spouse is 60, she is taking out thousands of dollars per year, without fear of attribution, and at her lower marginal tax rate. This could get even better if I am much older than my wife, and she opts to use my age on the RRIF, effectively increasing her minimum withdrawal amount.

[@giseliapereira5914]

When consolidating your RRSP’s into one account, don’t forget that the account is only covered by deposit insurance (CDIC) to a maximum of 100K. Also, if you have a RPP at the same institution, your Pension account and RRSP account are combined and insured to a maximum of 100K. (That was the case as of 2023). Don’t keep your eggs all in one basket as they say.

[@trentriver]

Very helpful - thanks. Question - If a person converts to a self directed RRIF, is the minimum withdrawal amount based on the initial value of the RRIF OR the value of the RRIF at the end of the calendar year OR ...??????. So, for example, if I converted an RRSP to a self-directed RRIF and it was initially 50,000, but at the end of the year it was 65,000 (including what I needed to minimally withdraw at the 50,000 dollar point), would I pay the minimum IN YEAR TWO based on the INITIAL 50,000 OR the new value of 65,000?

[@ParallelWealth]

Min is based on year end value

[@trentriver]

@@ParallelWealth Thanks!

[@andrewpeake4777]

I will be converting an RRSP before the end of the year as I turn 71 in dec. Can I withdraw just 2 thou in dec and then in the new year withdraw the min + required for a year To take advantage of the tax break.

[@rickstanhope7154]

If I turn 65 partway through a year (ie. May) am I eligible for the pension income tax credit in that year I turn 65, or do I have to wait for the following year ?

[@somai_1]

Thank you for the useful info.

[@brexit9279]

What if your RRSP AMOUNT has a CAPITAL LOSS? Can you claim a capital loss against it? Are you still taxed against the amount you withdraw?

[@ParallelWealth]

Can't claim loss and withdrawal is taxed - since contributions were tax deductible

[@brendawyber6556]

Can you tell me what happens when a spouse dies? Does the surviving spouse receive any CPP or OAS based on their partner? Is that complicated? If my husband dies will I receive any CPP or OAS of his, or just what I currently receive? Very informative

[@MrKikoboy]

there is a survivor pension which is a percentage of his/her CPP

[@tylerarnold943]

Can you draw from it and still pay into it at the same time.

[@val2937]

Question: If my RRIF is invested in a market that is continually fluctuating, what value amount is used for my minimum payout percentage calculation? Thank you.

[@ParallelWealth]

Value on Dec 31

[@karinbryant2924]

If a person is still working with a very decent wage 65k assuming you can withdraw a RRIF to pay down a bit debt. What are the tax implications?

[@ParallelWealth]

Added to your income and pay tax at the marginal rate.

[@JK-rv9tp]

It just occurred to me watching this that one potential downside to consolidating RRSPs/RRIFs is the consolidated one can be a size that may introduce withholding tax obligations that the individual funds didn't (pulling 15k out of one, vs 5k out of three). Also, at many institutions if your account is large enough, they will waive RRSP deregistration fees for withdrawals. I'm with RBC and have enough to be a "Royal Circle" member which has no dereg fees. I any case, this has convinced me to go ahead and convert my, my wife's and our spousal RRSPs to RRIFs when she retires this spring just shy of age 66. I plan to withdraw to bring us each up to the sweet spot tax bracket jump of upper 40s each, whether we need the money or not, and invest the after tax surplus in a regular unregistered investment account in dividend investments whose income can be drawn from tax free.

[@APICSKH]

I believe dividends are taxable in any account except in TFSA.

[@JK-rv9tp]

@@APICSKH When you collect "eligible dividends" and declare them as income in a non-reg acct, the dividend tax credit is claimed and a pretty big chunk is effectively tax free.

[@APICSKH]

@@JK-rv9tp interesting info, so far I have all my savings in reg accounts. Thanks for sharing your knowledge.

[@MikeBikerKickstand]

Why does our government make governing or money so difficult? Wife and I retired this year and between us have 7 pensions and two separate RRSP accounts. We're doing our estate planning now and thankfully we have a great CFP to guide us through. Investing is not something we're good at. We simply carved off a bit of money from our salaries for many (many) years and kinda forgot about it. Sure adds up over time, but if you don't plan out your consumption of that nest egg, between taxes and inflation, it will get eaten up pretty quick.

[@fazilete]

Can you refer your CFP

[@Chap17]

If u r under 70 and change your RRSp to a rrif, Confirming You do you need to take the money out that year...?

[@ParallelWealth]

No, the following year

[@callawton9255]

Is there a specific date that I have to withdraw funds from the RIF on the tax year? Can I withdraw Dec 31 of that year so the tax withholding time is kept to a minimum.

[@cheyenne_spring]

When is the minimum rif amount determined? ie: if your birthday is in Oct - is the part of the year before your birthday one rate and after your birthday another rate?

[@j.frankparnell3087]

It is determined on January 1 based on your age and the market value at that date.

[@jimmyr3591]

Great video. If you can income split your rrif with your spouse then what’s the point of a spousal rrsp?

[@ParallelWealth]

If you retire before age 65. Only split RRIF 65+

[@jimmyr3591]

@@ParallelWealth Thank you. I learnt something new today. That’s why your content is so great.

[@James_48]

@@ParallelWealthAdam, isn’t it also true that income splitting was introduced long after Spousal RRSPs were established?

[@ParallelWealth]

@@James_48 I believe it was. But both still exist for good reason.

[@jeandaigneault6667]

At retirement when you pull from a RIFF can we pull the amount in one amount in december or the pull has to be gradually made over the year in order to be able to fragmente it?

[@tomvanleeuwen3914]

If you withdraw minimum RRIF monies, would you put it in your TFSA? No taxes ?

[@ParallelWealth]

You pay tax on any RRIF withdrawal unless you have no other income.

[@tomvanleeuwen3914]

Even on the minimum percentage withdrawal?

[@ParallelWealth]

@tomvanleeuwen3914 correct, any RRIF withdrawal is part of your income for that year. Just no withholding tax on min.

[@captcruel]

so if li draw money from my rrsp I cannot income split this money, however if it was from a rrif I could?