Do you guys have any suggestions on how to pull out some RRSP funds and minimize the tax impact? Looking to pull out some funds to buy real estate in the US…
Answer:
On the question of RRSP withdrawals, it’s not so much that you’re going to reduce any taxes, but whether or not there are offsetting expenses available to reduce the tax hit.
To reduce the withholding taxes from a Canadian perspective, taking increments of less than $5000 at a time from the institution will set you at the lowest rate. That being said, it will be time to pay the piper when completing the tax returns for the year-end where you’ll have to pay any additional taxes required when they are finally calculated.
George E. Dube, CA, MAcc
Tags: RRSP
