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 »

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 »
 retirement planning

Millennial homebuyers and seniors among the winners of Budget 2019 + MORE Mar 24th

The Liberals’ last budget of this mandate sets the stage for the October federal election and includes a sprinkling of money for voters across a wide spectrum. But there are also gaps in spending for some groups. Here’s what the budget does and doesn’t do, for five key voting group.... More »
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How will a pension buyback impact your income tax return? + MORE Apr 7th

Q. I plan to do a pension buyback for my service with the Government of Canada. Can I deduct the lump sum payment from my total income if I fully pay the amount at once? And will the total income reported on my T4 be reduced if I choose to deduct a certain amount from each pay stub? Looking forward .... 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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