# Sweet spot for RRSP withdrawal when you have no other income



## janus10 (Nov 7, 2013)

If you have no other taxable income and are an early retiree, what's the approximate ideal amount one could withdraw? I was thinking about $25k for a married individual in Ontario because the taxes would be quite minimal.

Next year I will have significant taxable income to declare so this is a unique situation as we sold our home this year and don't NEED the rrsp withdrawal but I would rather get it out now vs waiting any subsequent year when I will have taxable income.


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## fireseeker (Jul 24, 2017)

I think there are too many unknown variables to offer a simple answer. They include:
-What is your expected future annual income? Will it be regular or will there be more zero income years?
-How big is the RRSP? (The larger it is the stronger the case for early withdrawals.)
-What is your expected income post-71? Do you expect to be in OAS clawback territory? If so, taking money out early can make sense.
-Do you have non-registered investments? Would you be better off triggering a cap gain this year because your AA is too stock heavy or a security has gotten too rich?
-The big one relates to your age. If the withdrawal is not taken, how long would the money remain sheltered and grow without taxation? (The longer this is, the stronger the case for leaving it.)
Sorry to not be helpful ...
But, depending on some of the answers to the above, taking a withdrawal up to the first or second tax bracket could be sensible.


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## Jimmy (May 19, 2017)

Agree it will save tax. Looks like an opportunity to w draw a little more this year in a lower bracket and use for next year may be an idea. You'll have to work out the tax scenarios. maybe take the amount you need this year + the amount you need next year and just divide by two and w draw that amt each yr to keep the tax the same for each yr at a lower rate.


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