How to go about securing the best Retirement Plan in Canada.
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What retirees need to know about tax brackets for 2025 + MORE Dec 20th
In our working lives and in our post-work retirement or semi-retirement phases, taxes are one of if not the single biggest expense. This hits home with the annual tax-filing deadline in April, but the time to start thinking about the yearly ordeal is before year-end.
The complexity of this task i.... More »
What’s my RRSP contribution limit for 2022? + MORE Dec 21st
This RRSP contribution room calculator will get you the numbers you need, but keep reading for a better understanding of RRSPs.
If you’re like many Canadians, you’re hoping you’ve paid enough tax in 2022 and may even be looking forward to a hefty tax refund. (The deadline for filing th.... More »
How to plan for retirement when you have no pension Nov 22nd
In years past retirement planning was relatively easy. Fifty years ago, more than half of working Canadians, and an even higher proportion of men, could fall back on a corporate or union pension plan as their main source of income in retirement.
That’s no longer the case. Just 38% of paid work.... More »
The 60/40 portfolio: A phoenix or a dud for retirees? + MORE Oct 26th
For Canadian investors, one of the biggest shocks of 2022 is how poorly balanced mutual funds, exchange-traded funds (ETFs) and portfolios have performed. Investors with funds based on the classic pension fund asset allocation of 60% in stocks and 40% in bonds have been bewildered to experience loss.... More »
How to start saving for retirement at 45 + MORE Mar 14th
Saving for retirement at age 45 means you’ll have a 20-year runway toward a traditional age 65 retirement. But what’s your starting point? The National Bank of Canada suggests that by age 40 you should have 2.1 times your annual income saved for retirement, while the U.S.-based firm Fidelity rec.... More »
How much are withholding taxes on RRSPs and RRIFs?
– moneysense.ca
I need to withdraw $6,600 from my RRIF over the next six months. This amount is in addition to my annual minimum. If I do the withdrawals in six monthly amounts of $1,100 (total of $6,600), will the tax withholding rate be 10% on each $1,100, or will it be a higher rate on the total $6,600 over the six-month period? –Anne
Before we look at the withholding taxes on withdrawals from registered retirement income funds (RRIFs), let’s first review the withholding taxes on withdrawals from registered retirement savings plans (RRSPs).
What is the RRSP withholding tax?
RRSP contributions are tax-deductible, and income and growth are tax-deferred. However, withdrawals from an RRSP are taxable and generally subject to withholding tax, unless they are made using the Home Buyers’ Plan (HBP) for an eligible home purchase or the Lifelong Learning Plan (LLP) for qualifying post-secondary education.
Withholding tax is the percentage of your withdrawal that is kept at the source, which is the financial institution where you hold your RRSP…
