@gauravsoodtiktok: Why would someone open a RRIF at 65 when they can wait until 71? There could be a tax advantage. Under Section 118(3) of Canada's Income Tax Act, eligible pension income can qualify for a federal tax credit. Here's what many Canadians overlook: At age 65, regular RRSP withdrawals generally don't qualify for this credit, but RRIF withdrawals generally do. Consider transferring $14,000 directly from an RRSP into a small RRIF and withdrawing $2,000 annually. Under the 2026 rules, this could provide up to $280 in federal tax savings per year, plus potential provincial tax savings. Over six years, that's up to $1,680 federally. Already receiving an employer pension? You may already be using this credit. Check line 31400 on your tax return to see whether you're claiming the pension income amount. Remember, RRIF withdrawals remain taxable, and the credit is non-refundable. Your actual benefit depends on your circumstances. Sources: Income Tax Act, s. 118(3) and 118(7); CRA Pension Income Amount, Line 31400. Follow for more insights on retirement and estate planning in Canada. That's exactly where I focus my practice. #RRIF #RRSP #CanadianTaxes #RetirementPlanning #EstatePlanning ______________________________________ Disclaimer: This content is for educational and informational purposes only and does not constitute financial, legal, tax, investment, or other professional advice. The concepts, strategies, and examples discussed are general in nature and may not be suitable for your specific situation. Always consult a licensed professional in your jurisdiction who can assess your individual circumstances before making any decisions. Past performance or hypothetical illustrations are not guarantees of future results. All investments involve risk, including the potential loss of principal. Any tax-related information is based on current Canadian rules and may change without notice; application and eligibility may vary by province or territory. This content does not constitute a solicitation to buy or sell any product, security, or service, nor does it endorse any specific provider. Viewers are solely responsible for their own financial decisions and outcomes.

Gaurav Sood

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Saturday 10 October 2026 01:28:28 GMT