Registered vs unregistered accounts: Where retirees should make withdrawals + MORE May 25th

How to go about securing the best Retirement Plan in Canada.
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 retirement savings

How to change a past tax return Apr 11th

Ask MoneySense I have non-registered investment management fees from 2021 and 2022 that were not claimed on my returns for those years. Can they be deducted on my 2023 return? If not, is there another way to utilize those deductions now? —Ian How to change a tax filing to claim investment m.... More »
 retirement savings plan

Making sense of the markets this week: December 24, 2023 Dec 28th

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors. It’s a tough job, but… It’s really hard to predict what the investment world will do. It’s even harder to predic.... More »

Where should working retirees put extra income: A TFSA or an RRSP? Jan 11th

Ask MoneySense I will be receiving CPP and OAS as of June 2024. I intend on working one more year until I reach 66. My question is: Should I put all my CPP money into an RRSP to shelter it from tax? Or should I pay the tax on it and invest in a tax-free savings account? –Gary Where to put r.... More »

CPP and disability: When should you retire and start your pension? Sep 28th

Ask MoneySense I have a brain injury and I’m collecting CPP disability of $15,000 a year, along with a workplace disability income of $16,000 a year. I am 61 years old, married, and I can’t figure out if I should retire now and start my pension or wait until I turn 65.  My pension projectio.... More »
 canada pension plan

RRIF and LIF withdrawal rates: Everything you need to know Mar 7th

At some point, a registered retirement savings plan (RRSP) is typically converted to a registered retirement income fund (RRIF). The latest you can defer the conversion of your account is the end of the year you turn 71. This means that by December 31 of your 71st year, you need to either withdraw t.... More »
Ask MoneySense
I moved to the U.S. at the age of 50, ten years ago, and currently live in Phoenix. When I turned 60, I applied for my Canadian CPP and started to collect. The payment is going into my Canadian bank account. My question is do I pay taxes on that money? Canadian taxes? U.S. taxes?—Richard

Cross-border taxation of CPP and Social Security

A non-resident of Canada who contributed to the Canada Pension Plan (CPP) can receive their retirement pension while living outside of Canada. Like Canadian residents, non-resident pensioners can apply to begin their pension any time between the ages of 60 and 70.

CPP can even be paid into a foreign bank account in a foreign currency. Whether it is paid into a Canadian bank account in Canada or into a foreign bank account elsewhere, the tax implications are the same.

How tax on CPP is applied for non-residents

There is a standard withholding tax rate of 25% that is retained at the source by Service Canada. This assumes the applicant correctly indicates their non-residency on their application form…

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Modest, but enough: Two middle-class couples share their retirement budgetsYou don’t need six figures to get the most out of your golden years, David Aston writes.

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Ask MoneySense
We are in the age bracket where we need to take RRIF withdrawals every year. I am 81, and my husband is 82. We also have an unregistered account. We need to withdraw additional money to pay our expenses. We have already taken the mandatory withdrawal for this year from our RRIF. Our TFSAs are fully funded. I know there are pros and cons of making withdrawals from registered and unregistered investments, but would you favour one over the other? My oldest sibling is 99 years old, and I have four other siblings in their 90s. My husband, who was an only child, had parents who lived to be 84 and 89, respectively. 

–Isabelle 

Which type of account is best for a retiree to withdraw from?

I understand your quandary, Isabelle. Which account should you draw from to cover your extra expenses: Your non-registered account or your registered retirement income fund (RRIF)?

It’s one of those questions where, the more you think about it, the more complicated it becomes…

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