tag:blogger.com,1999:blog-4402283548766807872.post1830375581215064530..comments2024-03-29T02:47:49.234-04:00Comments on The Blunt Bean Counter: RRIFs - How they Work and Tax PlanningThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-4402283548766807872.post-4249639353693118142014-09-17T14:58:55.526-04:002014-09-17T14:58:55.526-04:00Hi Anon:
You are required to withhold and remit C...Hi Anon:<br /><br />You are required to withhold and remit CPP and tax (you can file a form to request a reduction in tax withholding) or you can be subject to penalties for the non remittance.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-4474140286515622412014-09-17T13:27:19.085-04:002014-09-17T13:27:19.085-04:00Hi Mr.Blunt Bean Counter,
I am fan of your articl...Hi Mr.Blunt Bean Counter,<br /><br />I am fan of your articles. You are really good writer and explain things in decent manner. I have a question for you. If the business owner withdraws $100000(NET) as Salary from corporation in the year 2013 and does not deduct and pay income tax on that but pays out CPP only and after that corporation issues him T4 for gross $102356 without having any tax deducted on that. Is that right course for corporation? or tax should have been deducted out of his income and remitted to CRA. What is CRA's stand on that? Would really appreciate if you would explain what is right course.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-67448639504491446892014-07-13T23:47:47.542-04:002014-07-13T23:47:47.542-04:00Hi Coast Kid
Not sure what the typo is?
Of cours...Hi Coast Kid<br /><br />Not sure what the typo is?<br /><br />Of course pension splitting with your spouse is the best way to split pension income, but this post was really a pre-RRIF planning post so I did not discuss it.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-30506599183416294222014-07-12T09:05:15.127-04:002014-07-12T09:05:15.127-04:00Why did you not mention the fact that couples can ...Why did you not mention the fact that couples can split RIF income thereby further reducing their combined tax bill? Also, you have a typo in your chart headings Coast kidhttps://www.blogger.com/profile/09310730916377652286noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-67463986746307153682014-07-08T16:29:20.319-04:002014-07-08T16:29:20.319-04:00Hi Anon:
I have done a few including the most pop...Hi Anon:<br /><br />I have done a few including the most popular being the prescribed rate loan, however, that requires some large $. I will consider a blog on that topic. The best and basically only splitting opp for pension income is the Election to split pension income.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-38785775166960985882014-07-08T16:23:47.975-04:002014-07-08T16:23:47.975-04:00Thx Anon, not sure what more I can say on the earl...Thx Anon, not sure what more I can say on the early transition than I said in the article?The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-87864142717121567322014-07-07T23:54:20.677-04:002014-07-07T23:54:20.677-04:00Hi Mark - I am the reader who's comment you re...Hi Mark - I am the reader who's comment you referenced in this article. You replied to my comment and I never got around to replying back. I did create my own spreadsheet to project my RRIF withdrawals and impact on taxes and OAS. As you said it is not easy. My solution was not very elegant I resorted to listing the income sources for each year and manually adjusting them to see impacts and plan. Have you ever done a post on the options available for income splitting and can any of those be applied to RRSP or RRIF withdrawals? In our case my RRSP is about 3x the wife's.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-21575848433194024362014-07-07T15:27:43.724-04:002014-07-07T15:27:43.724-04:00The trick is to see just how much you can withdraw...The trick is to see just how much you can withdraw in the years before you have to without hurting your OAS. Do the math using your tax program when you're doing your return, then make the withdrawals before Dec 31 that year. I think there's room for a column on early transition of some RRSP funds to RRIF to maximise pension discounts and get some taxable income at a beneficial time.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-53061084640500623742014-07-04T13:56:44.062-04:002014-07-04T13:56:44.062-04:00thx Anon, great last comment.thx Anon, great last comment.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-32546052691185179882014-07-04T10:28:19.989-04:002014-07-04T10:28:19.989-04:00Great to the point from a Canadian perspective art...Great to the point from a Canadian perspective article Mark.<br />None of this 4% withdrawal rate that we hear all too often because it simiply does not apply to us Canadians except when you are 65 or for personal non-registered monies.<br />A lot of little ins and outs to retiring like the $2K tax credit and the withdrawal rate possibilities if your spouse is younger.<br />Unless you are well read it might be adviseable to sit down with a financial consultant / advisor before retiring to investigate the possible set-ups for establishing a retirement withdrawal plan.<br />For those with higher value RRSP's it is more than most likely that you will be hitting the higher taxation levels because once you couple CPP / QPP; OAS; company pension plans and maybe some non-registered earnings it is quite conceiveable that you could even exceed the threshold for initiating the OAS clawback. <br />So start planning before you press enter for that retirment.Anonymousnoreply@blogger.com