Quote:
Originally Posted by CivicBlues
But those RRIF withdrawals count as income, no? And if he has any other income say from PT work or rental income, that gets added on too and might put him over the 93K threshold.
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Yes it does but that's no different than withdrawing when it's a RRSP except that the gov't forces you to withdraw a minimum amount every year - this is sort of a good thing in that if you don't your beneficiaries will be hit with a giant tax bill when you pass b/c the remaining funds will be taxed all at once. For most people the tax impact of the annual withdrawals is pretty minimal - if you have a $500k RRSP you have to take out $27k (5.4%) when you are 72 years of age. There might be a some folks who still work and make enough to pay meaningful taxes but that's going to be pretty rare (and a good problem to have)
https://www.woodgundy.cibc.com/en/re...ithdrawal.html
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