Question
RRSP Withdrawal Rules
Hi
I'm 66, retired for 3 years, live in Ontario and have $120,000 in my RRSP. I have $4000 contribution room remaining in my RRSP and have been contributing $50 weekly to my RRSP and plan to continue until all the $4000 room left has been used up.
I also have $60,000 space in my TFSA and I'm considering withdrawing $5000 to $10000 yearly from my RRSP and moving it into my TFSA before I turn 71.
My wife is also retired and with pension splitting we are both in the lowest tax bracket.
Two questions:
1) Does it make sense to move money from my RRSP into my TFSA now instead of at 71?
2) If I withdraw $5000 from my RRSP and in the same year contribute $2600, can I use that $2600 as a tax credit?
Thanks,
Bob
