Hannah was the annuitant of a spousal RRSP to which her common-law partner Bill made the...
Hannah was the annuitant of a spousal RRSP to which her
common-law partner Bill made the following contributions:
$4,000 on January 15, 2019
$5,000 on January 15, 2018
If Hannah converts the spousal RRSP to an RRIF in the fall of 2019, and makes only the minimum withdrawal in 2020, what is the 2020 income tax consequence?
Homework Answers
Answer.
Minimum withdrawal is 4% of the RRIF balance at the beginning of the year in income.
I.e. $9000 ($4000+$5000) *4% = $360.
A minimum withdrawal of up to $5,000 is not subject to 10% tax withholding.
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Hannah was the annuitant of a spousal RRSP to which her
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