Retirement account balances look like they can be compared dollar for dollar, but the number on the screen is not always the amount you can spend. If you need $10,000, how much reaches your chequing account from an RRSP? What changes if the money comes from a TFSA? Could the withdrawal also change your OAS or GIS? Even when the amount you take out stays the same, the account can change the tax bill and the income CRA sees. This week's Smallbird Brief follows one $10,000 need through an RRSP, a TFSA and a non-registered account, then shows why the timing and order of withdrawals can matter as much as the balance itself. The full issue is linked in the comments.
Good topic. Worth reposting in Blossom’s Retirement category. 😉 As a follow up - it would be great to cover more ideas around the timing of the RRSP to RRIF decision. What’s the earliest age we can convert our RRSP to RRIF? Can we do a partial conversion? Can we restart/still contribute to a RRSP once we’ve converted to a RRIF? Are there other timing decisions we should be aware of? Always appreciate your topics and content. 👍
Kyle Garrett
@kgcottawa · 19d
Your well laid out posts on the meat and potatoes of finance are always SUPER appreciated. Thanks @smallbird.financial
Michael Conroy
@conroy119 · 18d
TFSA is OP. Please dont nerf it Canadian government 🤞
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