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Should you max out your RRSP before converting it to a RRIF? Apr 30th
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My husband and I retired last September. We have moved into a condo and are now travelling. Enjoying life but I’m concerned about his RRIF. My husband turns 71 in June 2025. So, I understand we can contribute to his RRSP for 2025 before he turns 71 and claim the contribution for the.... More »
My three kids chose different educational paths. How do I withdraw RESP funds in a way that’s fair to them and avoids unnecessary taxes? + MORE Sep 4th
Q. I have a registered education savings plan (RESP) for my three children, the youngest of whom is starting university this fall. We have made some withdrawals for the older two kids but the plan is still well-funded. Our middle child has decided to pursue a co-op university program, which is .... More »
At 40, Peter makes $94,000. He owns two condos and wants a third closer to downtown Toronto. Is that the right move? + MORE Sep 19th
Being an avid investor throughout his life, Peter has long been able to take advantage of GTA’s hot housing market. Now, he wants advice on how best to invest his savings..... More »
Gas Prices Are High. Would a Federal Tax Break Make a Difference at the Pump? Jul 3rd
With U.S. president Joe Biden calling on Congress to pause federal taxes on gas and diesel for three months to help Americans, some Canadians are wondering if a similar initiative may offer a temporary reprieve from high prices north of the border.
As of May, gas prices in Canada are up 48 .... More »
Failing to Plan is Planning to Fail: Do You Have an Emergency Savings Fund? Jan 11th
If 2019 is the year you promised to stop your bad spending habits in their tracks and ensure your savings go untouched, then maybe the old proverb “failing to plan is planning to fail” hits home for you. But what about the things that don’t make it into the plan? You know, those expenses tha.... More »
Low interest rates have ‘done their job’, says Poloz
– macleans.ca
THE CANADIAN PRESS/Sean KilpatrickOTTAWA – With the Bank of Canada nearing its next policy decision, governor Stephen Poloz is reiterating his message that his 2015 interest-rate cuts appear to have done their job.
Poloz said in an interview broadcast on business news channel CNBC that the Canadian economy enjoyed “surprisingly” strong growth in the first three months of 2017 and he expected the pace to stay above potential.
The Canadian dollar climbed to 76.44 cents US, up from an average price of 75.83 cents US on Tuesday, as the comments increased speculation about the possibility of an interest rate hike by the Bank of Canada.
If the central bank raises its key interest rate, the big Canadian banks will raise their prime rates, driving up the cost of variable rate mortgages and other loans and lines of credit tied to the benchmark rate.
Poloz credited the two rate cuts introduced by the bank in 2015 for helping the economy counteract the effects of the oil-price slump, which began in late 2014…
Q I lived and worked in the U.S. from 2000-2008 and accumulated some money in a 401K retirement savings plan during this time. I returned to Toronto in 2008, but the 401K was left in the U.S. I’ve decided to move all of the funds from the U.S. account into my RRSP for 2017 and made a full withdrawal of the 401K earlier this year. Will I need to file U.S. taxes with the withdrawal? I have read that a foreigner is not required to file for U.S. tax for this type of withdrawal if this is the only transaction for the year since the 15% withholding tax has already been applied.
My second question is regarding the 10% early withdrawal penalty. I was under the age of 59 when I withdrew the 401K money. However, I don’t see the 10% early withdrawal penalty on the statement. Do I need to include that amount in the U.S. tax filing if I do need to file?
— Adam
A Adam, there is good news and bad news on your situation. The bad news is that yes, you need to file a U.S. tax return and pay both income tax and the 10% penalty for early withdrawal of your U…
