Are you faced with the unhappy prospect of withdrawing from your RRIF, even when it has declined in value?
"Seniors can take advantage of what's called an in-kind withdrawal," explains Chartered Accountant John Mott in Toronto.
"An in-kind withdrawal allows you to transfer stocks, mutual funds or other assets from a RRIF to a non-registered account at no cost. Just like a cash withdrawal, you will pay tax on the securities being transferred, but there is no sale involved and no extra charge."
Seniors should discuss this with their financial institution. The federal government has also requested that institutions apprise clients that when withdrawals in excess of the minimum amount are made, the RRSP lump sum withholding tax rates will apply.
Courtesy of the Institute of Chartered Accountants of Ontario.
"In-Kind" Withdrawal for Seniors — No Charge
Are you faced with the unhappy prospect of withdrawing from your RRIF, even when it has declined in value?
"Seniors can take advantage of what's called an in-kind withdrawal," explains Chartered Accountant John Mott in Toronto.
"An in-kind withdrawal allows you to transfer stocks, mutual funds or other assets from a RRIF to a non-registered account at no cost. Just like a cash withdrawal, you will pay tax on the securities being transferred, but there is no sale involved and no extra charge."
Seniors should discuss this with their financial institution. The federal government has also requested that institutions apprise clients that when withdrawals in excess of the minimum amount are made, the RRSP lump sum withholding tax rates will apply.
Courtesy of the Institute of Chartered Accountants of Ontario.