Recently retired?

I am about to retire; how will this change my taxes?

Congratulations! Welcome to an exciting new chapter of your life!

There are several changes you will see regarding your taxes over the next couple years. Ideally, it is a good idea to sit down with your accountant prior to retiring. This allows us to tax plan for any potential payout you receive with your retirement, taking into consideration your RRSP balance, severance pay, pension payments, OAS, and CPP.

 

I have RRSPs, how do I best plan to withdraw them?

Every person has a unique situation when it comes to planning for retirement. Depending on the amount you have invested, as well as any potential pension you may receive, and your OAS and CPP entitlement, your optimal RRSP withdrawals will vary.

Your best option is to book an appointment at one of our offices and discuss your tax situation with an expert. We can help you create a plan that best fits your life.

 

Book your tax meeting with one of our tax professionals online today or by contacting one of our seven offices in Manitoba.

 

Things to consider when retiring:

  1. Pension Split

Pension split allows for the transfer of up to 50% of eligible pension income to be transferred from a higher income spouse to lower. Even if only one spouse is retired and receiving pension, you can still benefit from distributing pension income across both of you.

 

  1. Spousal RRSP contributions

You are no longer eligible to contribute to your own RRSP once you have turned 71. However, you can still benefit from contributing to your spouse’s RRSP if they aren’t 71 yet.

To determine if you can benefit from this strategy, it is recommended you sit down with an accountant at one of our offices to discuss your maximum tax savings potential.

 

Tax and succession planning before and after retirement can often lead to significant tax savings to one’s estate after death which results in more after-tax dollars for your beneficiaries and loved ones.  This tax season, ask your tax professional how succession planning can ensure the smooth transition of assets to your loved ones. 

Scroll to Top