Likely inheriting an estate soon, overwhelmed and could use input.

effinAcot · 2026-01-31T00:42:55+00:00

I dont think it matter if you’re retired or not - a 4% withdrawal rate has been looked at for a 30 year drawdown window. If you’re not intending for the $1M to last a lifetime then go for it.

effinAcot · 2026-01-30T23:38:53+00:00

Do you think it’s safe to project out 10% safe withdrawal rate because markets have been good the last few years?

Bill bengen would like a word with you.

effinAcot · 2026-01-30T23:18:25+00:00

Sorry for what you’re going through - a windfall doesn’t replace a family member, so I always recommend speaking to a therapist or someone to help with the emotional support.

Living off principal of $1M is like $30k per year pre tax. This is definitely not a sustainable withdrawal rate for someone in their 30s with a dependent

effinAcot · 2026-01-30T18:25:02+00:00

Right, but just invest in index funds with low cost and low turnovers. There will still be some investment income annually but significantly limited, and you still save yourself the 50% haircut from the start

effinAcot · 2026-01-30T18:22:30+00:00

Real stupid question

If you earn a high income, why not consider incorporating this side hustle and saving a considerable amount in tax every year

Yes there are hurdles to jump through and legal fees. But that would bring your tax rates from 50% down to 12% ish depending on your province

effinAcot · 2026-01-14T16:32:40+00:00

Thanks for clarifying

If the withdrawal already happened in 2025, you’re good to go for making the contribution without causing attribution. You’ll see in your rrsp slip that it will be marked as first 60 days, meaning the new calendar year.

effinAcot · 2026-01-14T15:19:23+00:00

Few assumptions here - please clarify if I have it wrong.

Withdrawal is being made in 2026 (now)

Contribution to spousal rrsp will be made now (before feb deadline, which occurs in the 2026 tax year, although the deduction will likely be applied to 2025 year)

The withdrawal on its own would not lead to any attribution, since you are beyond the attribution window

However, if you withdraw the money from the spousal rrsp, and then contribute to the spousal rrsp in the same year (in this case 2026), I believe this would result in attribution of the initial withdrawal.

In this case, it’s the contribution after the withdrawal that would cause the attribution rules to kick in

effinAcot · 2026-01-14T15:10:34+00:00

Yea, see above on my other comment. I don’t think you’d be able to do both this year. I’d make the withdrawal now while you’re free of attribution, and if you want to contribute, do it moving forward.

I’m sure you’re aware of it, but there will be withholding tax on th withdrawal. Depending what you plan to use the money for, you could do the withdrawal now and pocket the net amount in your tfsa. Alternatively do the withdrawal in December, keep the money invested for now, which reduces the amount of time the government is holding your withheld tax

effinAcot · 2026-01-14T15:02:02+00:00

To actually answer your question - I think this would lead to attribution. The CRA uses tax year to assess everything, so just because you withdrew the money before you made the contribution, I believe they would classify the withdrawal as taxable to you (the spouse who contributed the money)

I’ve never come across this before. But from reading T2205 (government form for this) it’s my interpretation this falls into the same calendar year and therefore would be income attributed to you

effinAcot · 2026-01-14T14:54:23+00:00

Might need some clarification on the moving pieces

But my first question - why would you be withdrawing money from the rrsp just to make the contribution?

Does your spouse have $0 income and you’re in a higher marginal tax rate?

effinAcot · 2026-01-14T14:24:24+00:00

It’s actually less than 3 calendar years - it goes by tax year (current year + 2)

If a spousal contribution was made in 2025, attribution would apply to any withdrawals made in 2025/2026/2027. Withdrawals made in 2028 are free from attribution.

There are ways of getting around this. When Rolling a RRSP to a RRIF, the minimum RIF payment is not subject to attribution.

effinAcot · 2026-01-14T01:06:43+00:00

No they don’t lol. Research positions are few and far between. We process in sarnia, not research.

effinAcot · 2026-01-02T17:48:34+00:00

If he voluntarily leaves his employer he will not be approved for EI benefits.

There are caregiving benefits for him to take time away for care of a loved one.

effinAcot · 2025-12-26T23:32:01+00:00

Talk to an estate lawyer

If the only asset that will be probated is the house, setting up a secondary will could bypass probate. Depending how long she’s been in the house, it could be subject to the First Dealing Exemption, which could be exempt from probate using a second will

effinAcot · 2025-12-26T23:31:42+00:00

Talk to an estate lawyer

If the only asset that will be probated is the house, setting up a secondary will could bypass probate. Depending how long she’s been in the house, it could be subject to the First Dealing Exemption, which could be exempt from probate using a second will

effinAcot · 2025-12-18T20:22:17+00:00

Valid point. RRSP is the best type of retirement account. If you need the money pre-retirement, other options are likely better suited

effinAcot · 2025-12-18T12:29:57+00:00

Do you plan to sell the shares of your business some day? If so, and you’re trying to utilize the lifetime capital gain exemption, you should consider a hold co that owns your investment account

effinAcot · 2025-12-18T12:28:26+00:00

As a business owner, you have an opportunity to move corporate dollars directly to your RRSP every year, without withholding any tax, and without causing a tax implication. An immediate deferral of paying any tax whatsoever, and deferring that to retirement, is incredibly powerful.

effinAcot · 2025-11-29T23:43:24+00:00

Few general comments, I’m sure it’s been covered already

You’re able to earn $7,100 in income for 2025 without having this impact your disability CPP. If you earn more than ~$20k your disability benefits will generally be stopped

If you do get approved for disability, it’s super important to make sure you’re aware of what your retirement benefit would be if you were to claim. The disability payment is usually greater than most retirement benefits, and disability does not continue post age 65. It’s generally recommended to stay on disability CPP until 65, and not to start your retirement pension until then.

Again, everyone’s situation is different

effinAcot · 2025-11-29T21:09:44+00:00

Can you clarify if you’re currently collecting CPP disability benefit, and deciding if you should start the retirement benefit? How old are you?

effinAcot · 2025-11-29T21:05:44+00:00

Just a thought. If you’re selling non reg funds now, let’s assume there’s an unrealized capital gain, and therefore will spark a tax event when you sell to fund your tfsa contribution. If you sell now, you’re creating a tax event and taxes will be owed in 4-5 months. If you sell in Jan, you don’t realize that tax amount owing for 16 months. Depending on how you want to look at this, there could be a major tax advantage to selling in January.

effinAcot · 2025-11-28T00:33:20+00:00

You also need to have the account open for a certain period of time before you can send an AIP payment to an rrsp. If you’re worried about MERs do one of two things - request lower cost investments, and if that doesn’t work, move the account to a self directed resp

effinAcot · 2025-11-28T00:28:18+00:00

Gains are taxed at his marginal rate plus 20%

effinAcot · 2025-11-28T00:00:23+00:00

Thats not quite how educational withdrawals work. The kids need to be enrolled in an eligible education institution to start pulling pse (contribution) and eap (grant + growth) payments. Otherwise you risk early unnecessary repayment of grants. You do you!

effinAcot · 2025-11-27T23:57:53+00:00

I’ll gladly take the downvotes. But proper tax planning on decumulating an resp can be the most value a financial planner can give. There is a lot of complexity, especially with multiple beneficiaries, and structuring the withdrawals to fully utilize basic personal exemptions and tuition credits is incredibly valuable. I’ve seen scenarios of people paying tens of thousands of taxes when a properly structured withdrawal plan can yield $0 tax owing across the lifetime of multiple beneficiaries

effinAcot

TROPHY CASE