Sentences with phrase «old age security clawbacks»

At the other end of the spectrum, a high - income earner may see significant Old Age Security clawbacks from RRIF withdrawals, but would still be better off with an RRSP because that would be more than offset by the greater tax savings when contributions are made.

If your income is high and you have a pension plan, the odds of experiencing Old Age Security clawbacks in retirement increases.

Once her net income is above $ 69,562, she will also be hit with the Old Age Security clawback.

A further complication to consider is that while dividend income is taxed favourably, it hurts you when it comes to income - tested government benefits such as the Old Age Security clawback.

Watch out for the dreaded Old Age Security clawback once you've started collecting government benefits.

Not exact matches

The result for the family who uses corporate class funds is the opportunity to structure taxable income from non-registered accounts to keep more of the first dollars invested, avoid high marginal tax rates and limit clawbacks of social benefits like the Old Age Security.

In addition to drawing income from your portfolio, you'll need to combine it with government pensions and possibly employer pensions, while accounting for potential clawbacks to government benefits like Old Age Security.

By the same token, if your salary is relatively low and you want to maximize future sources of government retirement income like Old Age Security and / or the Guaranteed Income Supplement, then again the TFSA is compelling: all withdrawals will be totally tax free and not trigger dreaded «clawbacks» of OAS or GIS.

The best part is that when you take the money out in retirement, it doesn't count as income, so you don't have to worry about clawbacks to government retirement benefits, such as Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).

«This reduces the possibility of being hit with the Old Age Security (OAS) clawback.»

That means you don't pay tax on it, it won't affect your GST credit or Employment Insurance, and you won't face clawbacks on your Guaranteed Income Supplement or Old Age Security.

Some advisers warn retirees and near - retirees that clawbacks of Old Age Security and, sometimes, the Guaranteed Income Supplement means an RRSP can create a significant tax liability down the road.

Here's something else to consider: when you retire, your withdrawals from your RRSP or RRIF could potentially place you in a higher tax bracket, resulting in clawbacks of your government income - tested benefits and credits, such as the Guaranteed Income Supplement and Old - Age Security.

If you're collecting Old Age Security, be aware that your additional interest income could raise your income to a level where a clawback of your benefits begins to kick in.

Both of you can claim the pension income credit (see topic 90), and you will no longer be subject to the Old Age Security (OAS) clawback (see topic 72).

The government imposes a special tax — the «clawback» — on your Old Age Security (OAS) payments if your net income for the year exceeds a certain annual threshold.

I ended up working a lot more than I thought and I know that resulted in higher taxes in my 60s and clawbacks to my Old Age Security.»

Also keep in mind this income will not trigger clawbacks of Old Age Security or the Guaranteed Income Supplement.

A: The Old Age Security (OAS) clawback can be painful for some seniors — especially those with Defined Benefit pension plans and high incomes.

Plus, when you retire, the money you take from TFSAs isn't considered income, so it won't result in clawbacks to Old Age Security and the Guaranteed Income Supplement.

Not only does it allow some of the RRIF income to be taxed in the hands of the lower - earning spouse, it can also reduce clawbacks on your Old Age Security (OAS) benefits.

This means that you and your husband will have to be cognizant of the potential of the Old Age Security (OAS) clawback that applies if your net income on your tax return (line 236) exceeds $ 72,809 for 2015.

This is especially good news for Canadians who may face clawbacks of income - tested benefits in retirement, notably the Guaranteed Income Supplement and Old Age Security.

In your retirement, TFSA withdrawals will have the advantage of not counting towards as income in terms of clawback of Old Age Security which in 2016 started at about $ 76,000 in income.

This strategy also means that benefits such as the pension credit can be made available to both of you, and you may reduce your exposure to the Old Age Security (OAS) clawback (see topic 72).

As a final blessing, when you withdraw money from TFSAs in old age, it won't result in clawbacks of the Guaranteed Income Supplement (for the elderly poor) or Old Age Security benefits (for middle - income seniorold age, it won't result in clawbacks of the Guaranteed Income Supplement (for the elderly poor) or Old Age Security benefits (for middle - income seniorage, it won't result in clawbacks of the Guaranteed Income Supplement (for the elderly poor) or Old Age Security benefits (for middle - income seniorOld Age Security benefits (for middle - income seniorAge Security benefits (for middle - income seniors).

As soon as you withdraw any money from you RRIP this sum would be added to your other sources of income and would likely be taxed at 50 % or more if you take into account the potential clawback of your Old Age Security pension, explains Heath.

Even more importantly, after the age of 65, you may be subject to an effective tax by way of a clawback of your Old Age Security (OAS) pensiage of 65, you may be subject to an effective tax by way of a clawback of your Old Age Security (OAS) pensiAge Security (OAS) pension.

Seniors whose income may exceed $ 70,000 need to be particularly mindful given their RRSP withdrawals may cause a clawback of their Old Age Security pension, which acts like an extra 15 % tax on income.

Unfortunately, there's a complication if you're 65 or older and subject to the dreaded Old Age Security (OAS) clawback, which applies to seniors with incomes of $ 67,700 and above.

However, a sharp eye on marginal tax rates is important in this activity, because clawbacks of the Age Amount and Old Age Security can make income averaging opportunities challenging.

In the first, seniors are subject to clawbacks of the age amount, the GST / HST Credit and the Old Age Security at various income leveage amount, the GST / HST Credit and the Old Age Security at various income leveAge Security at various income levels.

If you anticipate consistently earning under $ 35,000 annually, the TFSA makes the most sense because it won't result in the clawback of income - tested benefits in retirement — like Old Age Security (OAS) and the Guaranteed Income Supplement (GIS).

The big bugaboo is the combined impact of income tax and clawbacks of government benefits like Old Age Security (OAS).

In retirement, withdrawals from RRSPs and RRIFs can lead to clawbacks of Old Age Security and other government programs like the Guaranteed Income Supplement.

The problem is that dividends can artificially inflate your income, potentially triggering a clawback of Old Age Security (OAS) payments.

Depending on your financial picture, that extra income on top of your pension means you may face a «clawback» of your Old Age Security.

The bonus is that both spouses can claim the $ 2,000 pension income credit and the higher - income spouse may no longer be subject to clawbacks of Old Age Security.