tag:blogger.com,1999:blog-4402283548766807872.post4205563389985790155..comments2024-03-29T02:47:49.234-04:00Comments on The Blunt Bean Counter: RRSP Withdrawals – Two Tax TrapsThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-4402283548766807872.post-5414068973787412452021-01-03T11:25:20.483-05:002021-01-03T11:25:20.483-05:00Hi Anon
The answer is personally specific given y...Hi Anon<br /><br />The answer is personally specific given your other income and personal circumstances, so I cannot provide an answer. Given the quantum of your RRSP, I would engage an financial planner to assist you with this if you already do not have one.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-77182120676203913132020-12-31T15:06:04.130-05:002020-12-31T15:06:04.130-05:00I have over $3m in my rrsp and I’m 60. I am retir...I have over $3m in my rrsp and I’m 60. I am retired and rely on my rrsp for income. ($80k per year after tax)<br />The question is - What is the best tax saving strategy over the next 25 years?<br /><br />(I am aware of riff and the mandatory % withdrawals at 71)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-516057297844376062016-05-10T21:54:25.402-04:002016-05-10T21:54:25.402-04:00NopeNopeThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-14534750387552940802016-05-03T19:43:53.867-04:002016-05-03T19:43:53.867-04:00I made a mistake by withdrawing from my rrsp.I wit...I made a mistake by withdrawing from my rrsp.I withdrew $9000. It is costing me $1500. Is there a way out of this,Tanishahttps://www.blogger.com/profile/16113641308959666200noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-2272384000074959762015-03-12T18:06:00.276-04:002015-03-12T18:06:00.276-04:00Here is a great link
http://www.taxtips.ca/person...Here is a great link<br /><br />http://www.taxtips.ca/personaltax/investing/taxtreatment/stripbonds.htmThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-101977975044326162015-03-12T17:53:37.370-04:002015-03-12T17:53:37.370-04:00In 2009, I invested in Strip bonds. I never got an...In 2009, I invested in Strip bonds. I never got any slips from the bank for the interest income , I made. How should I report the interest income from strip bondsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-46717136619279303062015-03-01T21:32:52.244-05:002015-03-01T21:32:52.244-05:00Thank you so much.Thank you so much.aBnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1305984659693408032015-03-01T10:38:34.355-05:002015-03-01T10:38:34.355-05:00If the CRA did not issue a reassessment for missin...If the CRA did not issue a reassessment for missing information in the past three years, then if you miss something this year, it only starts the clock ticking and is a "warning".The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-43514037349052390772015-02-27T22:06:00.879-05:002015-02-27T22:06:00.879-05:00So the CRA would make an adjustment to your return...So the CRA would make an adjustment to your return, and then if next year you forget something then they can apply penalty? So the adjustment is a 'warning'?<br /><br />[I think I am asking this ..] So if there was no adjustment for bank interest last year, and if I do miss something accidentally this year, the most will be an adjustment?<br /><br />[I don't plan on forgetting reporting income, I just don't want a forgotten account somewhere causing a penalty.]aBnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-84644341995125840662015-02-27T14:26:49.605-05:002015-02-27T14:26:49.605-05:00Hi aB
The penalty can be very severe. I have neve...Hi aB<br /><br />The penalty can be very severe. I have never seen an adjustment by the CRA for bank interest if a Tslip was not issued and missed. The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-80569347630200153802015-02-27T10:37:58.777-05:002015-02-27T10:37:58.777-05:00How severe is the CRA about that 20% matching pena...How severe is the CRA about that 20% matching penalty?<br />With banks paying so little interest on savings accounts, I am sure a lot of people will have <$50 in interest, so no T5 by the bank, but this should be reported.<br />Are they going to just sit on you not reporting minor amounts until you do forget one time with a larger amount and jump on you?aBnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-44790939292281546912015-02-26T08:02:44.343-05:002015-02-26T08:02:44.343-05:00Hi Anon
Good question. IMHO you would use your ma...Hi Anon<br /><br />Good question. IMHO you would use your marginal rate, as your RRSP withdrawals are additional income at your marginal rate to your other retirement income and the initial RRSP contributions saved you money at your marginal tax rate, so you are matching.<br /><br />However, you could argue it is all one retirement pot of income and use an average rate, but I think marginal is more appropriate.<br /><br /> I like your idea of a tax on withdrawal column and if you read series on How Much Money Do I Need to Retire, I deal with that cost that is for some reason often ignored.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-23457204838527981142015-02-25T21:33:59.836-05:002015-02-25T21:33:59.836-05:00When determining how much taxes will be owed on RR...When determining how much taxes will be owed on RRSP withdrawals should you use your marginal rate or your average tax rate?<br /><br />I've also wondered the same question when determining your tax liability on your RRSP account when figuring out ones net worth! Should you be adding a entry in your liability column using your expected marginal tax rate during retirement or your average tax rate?<br /><br />Thanks for the post!Anonymousnoreply@blogger.com