One thing that would be beneficial to pensioners is to tax
RSP withdrawals at a lower rate or a «fixed» rate.
The only way to know if you will be making too much money in your retirement and therefore paying considerable tax on
your RSP withdrawals is to have a financial plan created to eliminate the guesswork.
I'm also starting to wonder whether we'll be making too much money in our retirement and therefore will likely be paying a lot in tax for
our RSP withdrawals.
Not exact matches
Karin Mizgala: If you withdraw funds from your
RSP, you will pay tax on the amount you withdraw unless the
withdrawal qualifies for the home buyers program or the lifelong learning plan.
The rate on 1 - year cashable GICs is guaranteed for one year, but you can access the funds (in whole or in part) any time after 30 days without penalty, subject to a minimum
withdrawal amount and maintaining a minimum remaining balance of $ 1,000 for TD Direct Investing non-registered and TFSA investment accounts and $ 500 for TD Direct Investing
RSP, RIF, RESP and RDSP investment accounts.
This nutty law would index the
RSP Home Buyer's plan to inflation, allowing the $ 25,000 maximum down payment
withdrawal to grow larger each year.
Due to this factor (and other factors), non-reg
withdrawal tax may actually be lower than
rsp over a very long time, maybe 30 + years.
Rsp and tfsa are only taxed once, tfsa at funding and
rsp at
withdrawal.
Even tho non-reg is being taxed twice (in and out), the lower tax on divs and gains may eventually be more economical vs
rsp's perpetual marginal rate for
withdrawals, but probably after many decades.