Withdrawing from RRSPs before age 71? - Page 9
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Thread: Withdrawing from RRSPs before age 71?

  1. #81
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    Quote Originally Posted by redsgomarching View Post
    she works at the bank i she wont get redemption fees. the withholding taxes will still be there. the thing about the RRIF is it will be mandatory withdrawals which will give her more than what she needs and increase her tax liability.
    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


  2. #82
    Senior Member heyjude's Avatar
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    Quote Originally Posted by gibor365 View Post
    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
    My thoughts too. She can't have her cake and eat it!

  3. #83
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    Quote Originally Posted by heyjude View Post
    My thoughts too. She can't have her cake and eat it!
    True! The only advantage I can see in "RRSP flexibility" withdravals that one year she can withdraw 0 (for example if some huge GIC is matured) and in other year to withdraw more, but it's hardly can be considering as "depletion"

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  5. #84
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    Quote Originally Posted by gibor365 View Post
    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
    she wont get redemption fees lol. the RRIFS are mandatory, the other way is not. not sure what is so hard to understand lol.

  6. #85
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    Quote Originally Posted by redsgomarching View Post
    she wont get redemption fees lol. the RRIFS are mandatory, the other way is not. not sure what is so hard to understand lol.
    Probably you don't understand . Mandatory is only RRIF minimums that is couple of %, if she gonna withdraw even less that RRIF minimums, she won't deplete her funds for next 120 years

  7. #86
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    Quote Originally Posted by gibor365 View Post
    Probably you don't understand . Mandatory is only RRIF minimums that is couple of %, if she gonna withdraw even less that RRIF minimums, she won't deplete her funds for next 120 years
    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.

  8. #87
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    Quote Originally Posted by gibor365 View Post
    Probably you don't understand . Mandatory is only RRIF minimums that is couple of %, if she gonna withdraw even less that RRIF minimums, she won't deplete her funds for next 120 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

  9. #88
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    Quote Originally Posted by agent99 View Post
    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
    Yes, it depends on age,but minimum payments are scheduled this way that it will last until owner turn 90+, so if somebody wants to deplete registed funds and want to withdraw less than RRIF minimum, it's unrealictic

  10. #89
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    Quote Originally Posted by redsgomarching View Post
    she wont get redemption fees lol. the RRIFS are mandatory, the other way is not. not sure what is so hard to understand lol.
    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.


    Quote Originally Posted by agent99 View Post
    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
    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

  11. #90
    Senior Member heyjude's Avatar
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    Quote Originally Posted by Eclectic12 View Post
    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.

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