Whats the best practice if all my savings are in my rrsp and come the time to retire? How can I maximize my dividends? Am I not obliged to transfer my RRSP to rrif at 65?
Posted Dec 22, 2022, 12:07 AM UTC
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I’m by now means an expert but I think taking all your dividends out each year makes sense even if it pushes you into a higher tax bracket
3
Am I not obliged to take out a minimum out each year so that eventually I have 0?
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Rrsp is a tax deferred account. There is no penalty or tax to move everything in ur rrsp to rrif. Then monthly distribution is considered as income and tax accordingly
3
If my monthly distributions are only dividend payouts, could I theoretically keep it till I die and pass it on to my kids?
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Then ur kid would get ur tax bill. Not sure what ur tax bracket is now. But plan to pay only 25 %
1
I wouldn’t leave it all in there as an inheritance. When you pass it all gets paid out as your last year of income so will be taxed heavily.
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You do not have to convert your RRSP into a RRIF till the end of the year you turn 71.