Your video popped up in my UA-cam feed, and since we just did the RRSP to RRIF conversion I thought I would watch. As I listened, hey I recognized the voice and looking at the Assante clues I realized it was you. Very good video, good points and well delivered. The one comment I will make is about having multiple RRIF accounts with different financial institutions is that the yearly minimum withdrawal applies to each RRIF account.
Thank-you so much for your very concise and informative video. You did answer some questions for me. The fact that I can move my rrif from one institution to another is good news- hopefully without penalties! I have so much to learn :-)
Well done and very informative video. One thing I think you should have mentioned is the RRIF minimum withdrawal amount is not subject to tax withholding at source. Financial institutions will only withhold tax on the amount above the minimum withdrawal amount unless you specifically ask them to calculate the withholding tax on the full amount.
No tax is withheld when the minimum amount is withdrawn from a RRIF. When withdrawals in excess of the minimum amount are made, the above RRSP lump sum withholding tax rates apply, but only on the excess over the minimum amount.
Thank you. This was very comprehensive. I particularly liked the part about pros and cons of naming beneficiaries. I didn't know that. Additional bullet on #9... there is no income attribution from the spousal RRIF (even in the 3 year window) if you are only taking the minimum withdrawal. This can come in handy.
Great content! If your RRIF account is mostly equities, does it mean you need to sell some to cover the amount that needs to be taken mandatory? Does it mean I have to sell every year to ensure I can cover the minimum amount to withdraw?
Yes, you would need to sell assets to generate the income. Another option is to sell or raise cash to pay the tax amount due and the remaining payment could be transferred on an in kind basis to a non-registered account if you do not need cash flow and want to keep the security because you like the Investment.
What about a Lira converting to lif are the rules different then a rrif , and pension if you are not 65 can you get the 2k deduction and can you income split not being 65
There is a lot more complexity when it comes to a LIRA conversion and there are differences between jurisdictions (Provincial and Federal) - good idea for a future video. You can get the pension tax credit at 65 and beyond and you can't income split with the LIF/RRIF until age 65.
Even though I do not need it, each year I take out of my RIF as I can without impacting my OAS. That money goes into our TFSAs and non registered accounts where the tax implications are not as great on capital gains. Any thoughts?
Re income attribution rules as they pertain to spousal rrifs. Attribution rules only apply to withdrawals from the spousal rrif that exceed the minimum
Can you create a RIFF at 65, Move part of your RRSP into it to start using the 2000 tax credit? But then in the new RIFF at 65 is the required withdrawal required at that age % for whatever you have in that RIFF? Can you keep adding just what you need toll 71 then the remainder get transfered from RRSP TO RIFF?
Yes, you can add a portion of your Rrsp to RRIF. The RRIF payments to get the tax credit are not based on the rrif minimum calculation but on the actual dollar amount taken from the account.
I heard that if you place the account through an insurance broker you can eliminate the taxes as an inheritance to your siblings? I think they are called deferred or divested stocks?
Sorry, not enough specifics to provide guidance. In Canada, for financial assets that have deferred taxable income or deferred capital gains will be normally be taxed in a last to die situation (if there is no surviving partner) regardless as to where you are holding the asset. Insurance agents or brokers could potentially shield assets from tax on death if rolled into insurance contracts prior to death. However, normally, the rolling of assets to the insurance contract is a disposition and will trigger tax.
Excellent video, thank you! One question about Transferring In Kind: if I transfer a stock from my RRSP to my non-registered account, is the current market value of the asset used for the tax calculation, and does that reset the base value of the capital asset in the non-registered account?
Thanks, Shaun. RE: Fact#6, if I designate my spouse as holder successor (i.e., not beneficiary), will all my RRIF balance go to her even though I have also designated a beneficiary? In addition, if I also designate my estate as the beneficiary, will this bypass probate (in Ontario) similar to have persons (e.g., heirs per my will) designated as beneficiaries? Thanks.
With successor all the RRIF balance will go to your partner. If you designate estate as bene the RRIF assets will form part of the probate value of your estate.
You should be able to leave your money in your rrsp and withdraw money as needed not as mandated that would leave you with a margine of safety when you are 90 which would be a good thing. Your client would probably appreciate that feature.Being 90 and broke is probably a bad thing.The govt taxes whatever is left anyway.You should be pushing for a change in the law to remove the minimum withdrawls.Do govt pensions deplete by the time someone is in their 90s?
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
Excellent overview of the RRIF account handling on retirement.
Your video popped up in my UA-cam feed, and since we just did the RRSP to RRIF conversion I thought I would watch. As I listened, hey I recognized the voice and looking at the Assante clues I realized it was you. Very good video, good points and well delivered. The one comment I will make is about having multiple RRIF accounts with different financial institutions is that the yearly minimum withdrawal applies to each RRIF account.
Another fantastic video with clear, consice information. I really appreciate all of your efforts. Take care
Thank-you so much for your very concise and informative video. You did answer some questions for me. The fact that I can move my rrif from one institution to another is good news- hopefully without penalties! I have so much to learn :-)
Well done and very informative video. One thing I think you should have mentioned is the RRIF minimum withdrawal amount is not subject to tax withholding at source. Financial institutions will only withhold tax on the amount above the minimum withdrawal amount unless you specifically ask them to calculate the withholding tax on the full amount.
Very good catch and important point to be aware of - thanks!
Thank you very much for RRIF information.
No tax is withheld when the minimum amount is withdrawn from a RRIF. When withdrawals in excess of the minimum amount are made, the above RRSP lump sum withholding tax rates apply, but only on the excess over the minimum amount.
Excellent overview
Many thanks for a most informative session!
Excellent information and very professionally delivered. Subscribed.
Very informative
Thank you
Thank you. This was very comprehensive. I particularly liked the part about pros and cons of naming beneficiaries. I didn't know that.
Additional bullet on #9... there is no income attribution from the spousal RRIF (even in the 3 year window) if you are only taking the minimum withdrawal. This can come in handy.
Great point! Thanks for making this contribution to the discussion.
Thanks a lot，good information，
Glad it was helpful!
Great content! If your RRIF account is mostly equities, does it mean you need to sell some to cover the amount that needs to be taken mandatory? Does it mean I have to sell every year to ensure I can cover the minimum amount to withdraw?
Yes, you would need to sell assets to generate the income. Another option is to sell or raise cash to pay the tax amount due and the remaining payment could be transferred on an in kind basis to a non-registered account if you do not need cash flow and want to keep the security because you like the Investment.
Thank you Sir
What about a Lira converting to lif are the rules different then a rrif , and pension if you are not 65 can you get the 2k deduction and can you income split not being 65
There is a lot more complexity when it comes to a LIRA conversion and there are differences between jurisdictions (Provincial and Federal) - good idea for a future video. You can get the pension tax credit at 65 and beyond and you can't income split with the LIF/RRIF until age 65.
Even though I do not need it, each year I take out of my RIF as I can without impacting my OAS. That money goes into our TFSAs and non registered accounts where the tax implications are not as great on capital gains. Any thoughts?
Makes good sense if it doesn't bump you into another tax bracket.
Re income attribution rules as they pertain to spousal rrifs. Attribution rules only apply to withdrawals from the spousal rrif that exceed the minimum
Can you create a RIFF at 65, Move part of your RRSP into it to start using the 2000 tax credit?
But then in the new RIFF at 65 is the required withdrawal required at that age % for whatever you have in that RIFF? Can you keep adding just what you need toll 71 then the remainder get transfered from RRSP TO RIFF?
Yes, you can add a portion of your Rrsp to RRIF. The RRIF payments to get the tax credit are not based on the rrif minimum calculation but on the actual dollar amount taken from the account.
You can keep adding sufficient assets to fund the tax credit and then of course the full amount has to be added to your rrif account at age 71
good summary
I heard that if you place the account through an insurance broker you can eliminate the taxes as an inheritance to your
siblings? I think they are called
deferred or divested stocks?
Sorry, not enough specifics to provide guidance. In Canada, for financial assets that have deferred taxable income or deferred capital gains will be normally be taxed in a last to die situation (if there is no surviving partner) regardless as to where you are holding the asset. Insurance agents or brokers could potentially shield assets from tax on death if rolled into insurance contracts prior to death. However, normally, the rolling of assets to the insurance contract is a disposition and will trigger tax.
There are donation strategies to charities that can reduce estate liabilities on death.
Excellent video, thank you! One question about Transferring In Kind: if I transfer a stock from my RRSP to my non-registered account, is the current market value of the asset used for the tax calculation, and does that reset the base value of the capital asset in the non-registered account?
Yes, correct
I thought the RRIF minimum withdrawal had no withholding tax at source? This would be the reason for converting to a RRIF early.
True there is no tax withholding required on the minimum but you’ll still need to pay the tax when you file your T1 general tax return at tax season
Thanks, Shaun. RE: Fact#6, if I designate my spouse as holder successor (i.e., not beneficiary), will all my RRIF balance go to her even though I have also designated a beneficiary? In addition, if I also designate my estate as the beneficiary, will this bypass probate (in Ontario) similar to have persons (e.g., heirs per my will) designated as beneficiaries? Thanks.
With successor all the RRIF balance will go to your partner. If you designate estate as bene the RRIF assets will form part of the probate value of your estate.
You should be able to leave your money in your rrsp and withdraw money as needed not as mandated that would leave you with a margine of safety when you are 90 which would be a good thing. Your client would probably appreciate that feature.Being 90 and broke is probably a bad thing.The govt taxes whatever is left anyway.You should be pushing for a change in the law to remove the minimum withdrawls.Do govt pensions deplete by the time someone is in their 90s?
I don't think an in-kind transfer from a RRIF to a TFSA is allowed. The bank may consider it as an asset swap which is not allowed under CRA rules ?
Two step. First to an open account and then to TFSA.
Can you transfer between your spousal and personal RRIF?
Unfortunately not.
Excellent information. RRIF meltdown tricky. 👍
(Video abit too long)
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.