Many would suggest Bob split his RRSP withdrawals with his spouse, starting at age 65, as a way of reducing taxes.
When to begin cashing in your RRSP. Share on Facebook Share on Twitter. Story continues below advertisement.
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Unfortunately, statistics show that millions of people are taking money out of RRSPs long before retirement. The whole idea behind investing in your education is to invest in your ability to increase your potential earning power.
Due to technical reasons, we have temporarily removed commenting from our articles. The last 10 stories you viewed are saved here. Sign up to receive our free, Saving for Retirement series in your inbox. At that time, you may have to pay more tax on the money — on top of the withholding tax.
Diamond says a better solution for Bob might be to start withdrawing from the RRSP at age 60, even though he doesn't need the funds. Most senior Catholic cleric ever charged with child sexual abuse convicted.
What if you need emergency funds? That may mean withdrawing from registered assets early.
Loss of tax-sheltered compounding When you withdraw funds from an RRSP, you lose one of the main benefits: All rights reserved. Share 6.How to Transfer an RRSP to a TFSA without Tax Consequences
The treatment of RRSP withdrawal is treated as any other income.