A spousal investment loan strategy is where a higher-income spouse loans money to the lower-income spouse for the purposes of investing and staying onside with CRA. You would think that one spouse could simply give money to another spouse to invest in a taxable (non-registered) investing acco...
By contributing to your RRSP, the government “recalculates” your taxable income. In this case, it treats it like you only made $44,152.10 (5). And because you made less income, you pay less tax (6). Therefore, because there is a difference in how much tax you already paid (2) a...
In order to keep your taxable income consistent throughout the lifetime of your non-registered annuity, make sure that you look at “prescribed annuities”. Non-prescribed annuities will pay you more taxable income on the front end of payments, which might lead to a higher tax bill. 2)If ...
Top Retirement Income FAQs When should I take my CPP/QPP and OAS? What are the main sources of income in retirement? Will TFSA or RRIF withdrawals impact my government benefits? What questions should I ask my employer about my pension plan? See More FAQs ...
RRSP withdrawals are subject to withholding taxes and are considered taxable income. For some people, money in a TFSA might be too easy to access. The future is uncertain The younger you are, the harder it is to determine which account to put your retirement money. When in doubt – ...
because you will have quit your job and your only taxable income will be your 401(k) withdrawals. If you try to withdraw the money earlier than age 59.5, you’ll pay the income tax mentioned above, PLUS a 10% penalty on top of it. Assuming we want to avoid the 10% penalty, we ...
By contributing to your RRSP, the government “recalculates” your taxable income. In this case, it treats it like you only made $44,152.10 (5). And because you made less income, you pay less tax (6). Therefore, because there is a difference in how much tax you already paid (2) ...