After inheriting a RRIF account, how to know what you owe the taxman Mar 10th

All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
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An easy guide to income splitting for seniors Apr 14th

Q. My husband and I are both retired. He still has income from his business, and I have cashed in all of my RRSPs but one. My question is: Can Hubby cash one of his RRSPs (and pay taxes, of course), but then turn around and buy a spousal RRSP for me? Would that be worth doing? Then I could cash this.... More »
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Compare the Best Savings Accounts in Canada + MORE Nov 25th

How to use this tool: You can simply scan the savings account comparison table below to view interest rates offered by financial institutions across Canada. Or, input your estimated account balance and compare between high-interest savings accounts (HISA), tax-free savings accounts (TFSA), registere.... More »

Can Canadian seniors collect government benefits while still working? + MORE May 26th

Q. This fall, I will celebrate my 65th birthday, and plan to reduce my work hours to three days a week, from my current full-time hours now. I also plan to begin collecting my Canada Pension Plan and Old Age Security benefits—but, at the same time, I want to avoid being taxed on my income if possi.... More »

Why the $35,000 RRSP Home Buyers’ Plan won’t be much help Mar 31st

It’s been about a week since federal budget day and I still have questions about some of the things the government announced. For instance, why did they introduce a deferred annuity, which will allow Canadians to put 25% of their RRSP or RRIF into an annuity that must start paying out by 85 at the.... More »
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What types of Tax-Free Savings Accounts (TFSAs) exist? + MORE Feb 10th

A Tax-Free Savings Account (TFSA) is a fantastic way to earn money on your savings, without having to pay tax on those earnings. Registered by the federal government, TFSAs are available to Canadians aged 18 and older. Unlike a Registered Retirement Savings Plan (RRSP), you cannot deduct contributio.... More »
Q: I’m wondering if there is a simple way to calculate the tax liability to named RRIF beneficiaries upon death of the account holder? 
My wife’s mother passed away in October 2018. My wife was one of 3 named beneficiaries of a RRIF worth $265,000, and her share was $117,000 (44%). There are no estate assets from which to pay the income tax liability.
My wife knows that she will need to pay the income tax payable on her share, and she wants to prepay this into her own CRA account by April 30, 2019, to avoid penalty/interest. We live in BC.
How can we calculate the amount that will be owing?
– Randy
A: I’m sorry to hear about your mother-in-law’s passing, Randy.
When someone dies and has a Registered Retirement Income Fund (RRIF) or a similar tax-deferred retirement account like a Registered Retirement Savings Plan (RRSP), there may be tax implications. If the account beneficiary is a surviving spouse or common-law partner, the tax payable may be deferred until that spouse takes withdrawals or dies…

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