TAX PLANNING WITH THE RETIRED
Filed Under Tax · Tagged: Retired, tax planning
Saving taxes for the retired is one of the best things you can do for the retired to free up cash flow. Here are some of the key factors you have to look at for your to save on taxes when you are retired:
CPP, OAS and/or other pensions: Pension income can be split to lower the couple’s overall taxes paid. You can split pensions and CPP but not OAS.
RRIF (Registered Retirement Income Fund): RIFFs are treated as pensions in that they can be split between spouses. Currently, RRIFs have a mandatory annual withdrawal with tax consequences.
CLAWED BACK OAS: If you, as a retiree, make too much income, CRA will claw back some of your OAS. The higher the income, the more that is clawed back.
INVESTMENTS MADE THROUGH CORPORATIONS AND TRUSTS: If you don’t need the income, investing through corporations and trusts is a way to avoid the personal tax and claw back consequences.
TAXES UPON DEATH: The biggest tax consequence for a retiree is taxes upon death. Tax planning for taxes upon death is part of an estate plan.
