So I'm helping my mother do some tax planning and her income taxes.
She is in here late 60's and starting to dip into her RRSP's
27k base income as she is widowed.
On a 27k income she pays around 1700 in taxes.
Heres where in the RRSPs come in, She withdrawls 10k, already losing 2k in withholding taxes, her income taxes jumps up to around 1900.
Wait till shes 71, then the mandatory RIF withdrawl rates hit and, she'll be withdrawing close to 15k and paying over 5k in taxes.
This seems to be alot of taxes, and maybe it would've been better to not by RRSPs. Also she will probably out live here money so, the government will get most of it.
I
She is in here late 60's and starting to dip into her RRSP's
27k base income as she is widowed.
On a 27k income she pays around 1700 in taxes.
Heres where in the RRSPs come in, She withdrawls 10k, already losing 2k in withholding taxes, her income taxes jumps up to around 1900.
Wait till shes 71, then the mandatory RIF withdrawl rates hit and, she'll be withdrawing close to 15k and paying over 5k in taxes.
This seems to be alot of taxes, and maybe it would've been better to not by RRSPs. Also she will probably out live here money so, the government will get most of it.
I