As the parent of the child you are allowed to make
a lump sum withdrawal from the policy that is still in term to pay for any medical expense.
Even if your income is not high enough to trigger OAS clawbacks, it only takes one year where you face a cash crunch and are forced to make
a lump sum withdrawal from your RRSP.
Not exact matches
When
withdrawals are deducted
from the investment portfolio in a SWR model, these are usually done in a
lump sum at the start of the year (month).
The Guaranteed Transfer
Withdrawal Rate is applied to all investment option transfers
from the Non-Personal Income Benefit Investment Options to the Personal Income Benefit variable investment options, contributions made in a
lump sum (including amounts attributable to contract exchanges and direct transfers
from other funding vehicles under the Plan) and rollovers.
A
withdrawal and re-contribution strategy involves withdrawing a
lump sum from super and then re-contributing the money back as a tax - free non-concessional (after tax) contribution.
So, if your goal target year is say 5th year
from now, do plan your
withdrawals carefully as the units allocated under ELSS funds (SIP /
Lump sum) are locked for 3 year period.
You may even lose your job at some point; experience a disability; retire early, transfer a commuted value
lump -
sum payment
from your pension into a locked - in RRSP; or decide to defer your pension start date at retirement — all things that could create a year or number of years where your income is significantly lower and strategic RRSP
withdrawals could be made at a lower tax rate than today.
Note that CPP, OAS and GIS payments do NOT help generate the pension credit, nor do retiring allowances or
lump -
sum withdrawals from RRSPs.
Lump sum partial
withdrawals can be made
from your funds after 5 complete policy years, provided the Life Assured is at least 18 years of age.
These plans come with a provision of partial
withdrawals that allow you to withdraw
lump sum amount
from the yet - to - mature policy.