RRSP Withdrawal and Taxes
https://www.canada.ca/en/revenue-agency ... awals.html
Hi All,
Dumb question. Since I'm not a Finance guy, I just wanted to check on RRSP Withdrawal and Taxes for my parents when they retire at 65. They have a RRSP account held at Questrade, where they own some stable div paying stocks. On their birthday when they turn 65, are they eligible to withdraw from their account or is there some sort of process that they need to go through to withdraw their funds?
Also (Taxes)
Based on the above link, tax rates are
10% on amounts up to $5,000
20% on amounts over $5,000 up to including $15,000
30% on amounts over $15,000
If my parents are withdrawing $500 per month from their RRSP account, will they be charged 10% so $50 per month in taxes or $600 in taxes for the year? Or is calculated using the annual withdrawal amount so (12months * $500 = $6000), so 20% tax rates = $1200 in taxes for the year?
Thanks all
Hi All,
Dumb question. Since I'm not a Finance guy, I just wanted to check on RRSP Withdrawal and Taxes for my parents when they retire at 65. They have a RRSP account held at Questrade, where they own some stable div paying stocks. On their birthday when they turn 65, are they eligible to withdraw from their account or is there some sort of process that they need to go through to withdraw their funds?
Also (Taxes)
Based on the above link, tax rates are
10% on amounts up to $5,000
20% on amounts over $5,000 up to including $15,000
30% on amounts over $15,000
If my parents are withdrawing $500 per month from their RRSP account, will they be charged 10% so $50 per month in taxes or $600 in taxes for the year? Or is calculated using the annual withdrawal amount so (12months * $500 = $6000), so 20% tax rates = $1200 in taxes for the year?
Thanks all