My wufe also works ib the bank and she's not exemp from redemption fees.... also, I dpn't get... in one post you say that she wants to deplete caputa; and ib otjer post that RRIFs minimum witdrawal (that is just couple of %_ is too big for her
I do understand, we know the plan and we've run the numbers. She doesn't want to have to make mandatory withdrawals she will take out what she needs at the beginning of each year in hopes to deplete as much as she can by the time she hits 65 where she can take her pension, cpp, oas. this will minimize her tax over the years.
Minimum RRIF withdrawal is more than a "couple of %" Until a couple of years ago it was even higher.
https://www.woodgundy.cibc.com/wg/re...ithdrawal.html
Hmmm ... if the redemption fees are waived - does this mean withdrawal fees as well?
The RRSP does have the ability to schedule withdrawals but for non-bank employees - there's usually a withdrawal fee, in addition to the withholding tax.
The RRIF avoids this but does have minimum withdrawal amounts.
Unless one has hit 71 - can't one transfer a small amount to the RRIF, providing some control over what the minimum amounts will be?
Cheers
Yes. Assuming the objective is to take a withdraw a small, specified amount annually, while leaving the remainder intact, the most efficient strategy would be to use the desired annual payment as the minimum withdrawal amount, to calculate the principal required in an RRIF to pay out that amount every year, and to transfer that principal from the RRSP to an RRIF, leaving the remainder of the RRSP to grow until age 71. As long as RRIF payments are minimums, no tax will be withdrawn at source, though of course it will all be reconciled at tax time. And there should be no annual fees attached to these RRIF withdrawals.
Last edited by heyjude; 2017-03-23 at 03:53 PM.