Tax Planning
Withdrawing from a RDSP
Withdrawing from a RDSP must begin before the end of the year the beneficiary turns 60 years old. However, withdrawals can happen at any age but there may be penalties. There are two types of […]
Tax Planning
Tax Planning
Contributions to a RDSP
Contributions to a RDSP, Registered Disability Savings Plan, have a lifetime limit of $200,000 but no annual limit amount. Contributions into a RDSP are not limited only to the plan holder. With written permission from […]
Tax Planning
Withdrawing from a LIRA
Withdrawing from a LIRA can be complicated if you don’t know where to begin. Locked In Retirement Accounts requires the completion of applicable forms and meeting certain requirements that vary province by province. As each […]
Tax Planning
Withdrawing from a LIF
Minimum Mandatory Withdrawals When Withdrawing from a LIF When withdrawing from a LIF, keep in mind the minimum and maximum withdrawal percentage. The percentages vary from province to province. Funds withdrawn from a LIF will […]
Tax Planning
Withdrawing from a RESP
When withdrawing from a RESP, you should remember that withdrawing can either be for school purposes or non-school purposes. Each course has it’s own consequences. In order for a beneficiary to proceed withdrawing from a […]
Tax Planning
Withdrawing from a Spousal RRSP
Withdrawing from a spousal RRSP is permitted and withholding tax rates apply. However keep in mind that tax on withdrawals from a spousal plan will be taxed in the annuitant’s name only if no contributions […]
Tax Planning
Rules of RRSP Contributions
Anyone who has “earned income” such as employment earnings can contribute to an RRSP – up until December 31st of the year they turn 71. Earned income may also include self-employment income, CPP/QPP disability payments, and net rental […]
Estate Planning
Dealing with a RRIF Account Upon Death
Naming a beneficiary on your RRIF account allows you to avoid probate fees as your RRIF account upon death will not be part of your estate. If you have a RRIF, it’s important to make […]
Tax Planning
Understanding RRIF Minimum Withdrawal Rate
At the end of the year you turn 71, your RRSP matures and you must convert it to a Registered Retirement Income Fund. Each year, a minimum amount based on a percentage must be withdrawn […]
Tax Planning
Splitting Income with a Spousal RRSP
Spousal RRSP allow tax payers to effectively split income and save on tax. This is especially true when there is a large income disparity between spouses. Spousal Registered Retirement Savings Plan are opened in the […]