Tag Archives: RRIF

Claiming the RRIF Re-Contribution on your 2015 Tax Return

If you received a 2015 T4RIF form with an amount using the old minimum withdrawal rate and you have re-contributed the difference between it and the new rate, how do you make sure that you only pay taxes on the new withdrawal rate? More

Estimating How Much You Need In Retirement

Estimating How Much You Need In RetirementChart3How much do you really need to retire? Are you one of the majority that either have a large number in mind or do not know? It may not be as bad as you think. What you need is an estimate of your expenses when you retire based on what you spend today, have an understanding of where your retirement income will come from and how you will use your savings. A spreadsheet is provided that will help you and it only takes a few minutes to fill in. You can try different values for capital, interest rates, inflation rate and withdrawal amounts. More

The Minimum RRSP You Should Have

If you will not have a low income when retired and if you will not have other pension income, you should have at least $40,000 in RRSPs when you reach age 71. This ensures that the first $2,000 of payouts makes use of the $2,000 Federal Pension Income Amount non-refundable tax credit. More

You Need to Look at Your RRIF Withdrawals

With the 2015 Canadian Federal budget, the minimum payout rates for Registered Retirement Income Funds (RRIF) have been reduced significantly. If you only withdraw this amount each year you might have a much larger capital than you expect when you reach your 90s. If you do not want so much left as an inheritance with the resulting large income taxes you may want to increase your withdrawals. More

Setting TFSA and RRIF Withdrawals

Setting TFSA and RRIF Withdrawals 3When you retire, or if you are already retired, and you have TFSA and RRSP/RRIF, you will want to set your withdrawals to match your income needs. You should also manage how your capital is being depleted. The spreadsheet provided offers options for doing both. More

TFSA and RRSP – Providing a Fixed Retirement Income Using 2015 Rates

TFSA and RRSP - Providing a Fixed Retirement Income2015 1This post describes a spreadsheet that you can download that shows how you can use RRSPs and TFSAs to generate a fixed retirement income each year. You will probably have a number of both RRSPs and TFSAs due to the restrictive amount of money you can invest in the TFSA. Knowing what they can provide as income before the capital is exhausted is critical to retirement planning.  More

RRIF Minimum Payout – 2015 Rates

RRIF Minimum Payout - 2015 Rates 1
In the 2015 Federal Budget, the minimum payout rates for Registered Retirement Income Funds (RRIF) have been reduced significantly so that capital can be preserved for a longer period of time. This post updates a previous one that uses the old rates. An updated spreadsheet can be downloaded that provides tables and charts that show the impact on capital of the minimum payout for different starting RRIF capital, interest rate and marginal tax rate and includes the impact inflation. More

RRIF Minimum Payout – 2015 versus Old Rates

RRIF Minimum Payout - 2015 versus Old Rates 1
In the 2015 Federal Budget, the minimum payout rates for Registered Retirement Income Funds (RRIF) have been reduced significantly so that capital can be preserved for a longer period of time. Instead of a payout of 7.31% at age 71 it will be 5.28%. The reduction in the rate is more than 28% initially going down to just over 20% after 10 years! You can see the impact on the charts in this post and try your own options with the downloadable spreadsheet. More

TFSA and RRSP – Providing a Fixed Retirement Income

TFSA and RRSP - Providing a Fixed Retirement Income1This post describes a spreadsheet that you can download that shows how you can use RRSPs and TFSAs to generate a fixed retirement income each year. You will probably have a number of both RRSPs and TFSAs due to the restrictive amount of money you can invest in the TFSA. Knowing what they can provide as income before the capital is exhausted is critical to retirement planning.  More

TFSA or RRSP – Impact of Reinvesting the Tax Refund

TFSA or RRSP - Impact of Reinvesting the Tax Refund 2As shown in this post, the RRSP tax refund must be fully reinvesting each year if the RRSP is to provide the same income and close to the same capital during retirement compared to a TFSA. Even then, the TFSA is a better retirement option. The spreadsheet used for this analysis can be downloaded so you can try out different conditions such as your own province, marginal tax rate and reinvestment strategy. A major difference between a TFSA and a RRSP is that the RRSP is tax deductible while the TFSA is not and that the RRSP generates a tax refund which depends on your marginal tax rate. More

RRIF Minimum Payout

Payouts from a RRIF are taxable. A spreadsheet can be downloaded that provides tables and charts that show the impact on capital of the minimum payout for different starting RRIF capital, interest rate and marginal tax rate. If you have a RRSP, a RRIF must be taken out when you reach age 71. There are mandatory payouts per year that reduce the capital each year, when you have a return of less than 9%.  More