You should be able to leave your money in your rrsp and remove money as you need it in any particular year rather than having to take out a minimum amount as it is now. That would be a real self directed retirement plan The remaining amount is all taxed anyway. This would give us some choice as we get older.
For those with RRIFs, unlike RRSPs where the tax withheld is based on the amount withdrawn, your institution may start withholding the max tax (30%) on your withdrawals after you exceed the minimum (non taxed) yearly withdrawal amount. This is especially true if your making more frequent withdrawals. Another benefit of being in a RRIF vs. RRSP; you don't get charged a fee by your financial institution each time you make a withdrawal.
Stop working early, retire early and start de-registering money early to avoid high tax brackets or tax all together. Too much income in retirement means you will be giving back.
For funding the RRIF, is it my responsibility to sell my stock holdings or other equities in order to make the payment? What happens if I don't have enough cash because I neglected to sell something in time? Thanks for the informative video!
You should be able to leave your money in your rrsp and remove money as you need it in any particular year rather than having to take out a minimum amount as it is now. That would be a real self directed retirement plan The remaining amount is all taxed anyway. This would give us some choice as we get older.
For those with RRIFs, unlike RRSPs where the tax withheld is based on the amount withdrawn, your institution may start withholding the max tax (30%) on your withdrawals after you exceed the minimum (non taxed) yearly withdrawal amount. This is especially true if your making more frequent withdrawals. Another benefit of being in a RRIF vs. RRSP; you don't get charged a fee by your financial institution each time you make a withdrawal.
This is true, though many non-bank firms will not charge you a deregistration fee for withdrawing from your RRSP.
Stop working early, retire early and start de-registering money early to avoid high tax brackets or tax all together. Too much income in retirement means you will be giving back.
The minimum withdrawal is based on either your own age or your spouse or common law partner's age.
Yes thanks @louisclarke4646. We typically recommend using the youngest spouse's age to allow for more flexibility.
Can you make unscheduled withdrawals from RRIF in addition to your scheduled withdrawals?
Yes, you absolutely can! For RRIFs' there is only a minimum withdrawal, no maximum and just like an RRSP you can withdraw at anytime.
For funding the RRIF, is it my responsibility to sell my stock holdings or other equities in order to make the payment? What happens if I don't have enough cash because I neglected to sell something in time? Thanks for the informative video!
This could depend on the institution. They may have a process for selling, or you may enter a debit position.
TD bank says they will sell some securities if you don't have enough cash to cover the minimum required withdrawal. Check with your bank.