RRIF Lump Sum Withdrawal

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CASAMARROM
Posts: 5
Joined: Thu Jun 18, 2020 2:34 pm

RRIF Lump Sum Withdrawal

Post by CASAMARROM » Fri Jun 19, 2020 6:08 pm

Thank you Nelsona,

It is great to learn we do not need 8833. I had read somewhere, that there would be a fine of $1000 if an individual fails to report 8833.
Because it was a Lump Sum, this account has been closed and it will not be reported next year on F-Bar neither 8938. It is Correct?
I have reported the NR4 RRIF withdrawal on 1099-R.
On 1116 Part I used a separate column from (CPP+OAS) for this RRIF withdrawal. Should I had added all CPP+OAS+RRIF in the same column?
Thank you very much for your help.

I read your explanation posted bellow about Taxable and Non Taxable Rate.
I am not sure where I should use those calculations.
I appreciate your advice.

RE: US tax for RRSP RIF distribution Taxable and Foreign tax Credit
by worryfreeinvestor » Fri May 31, 2019 7:52 pm
nelsona wrote:

Each year you take out money, you need to determine the taxable ratio based
on (a) the non-taxable amount in your RRSP/RRIF and the total amount you have.
The non-taxable portion when you first begin withdrawing is the $200 you had when you arrived.
The taxable portion is above that.
So, if at beginning of year you had $300, then the taxable ratio is (300-200)/300 = 1/3
Si, if you took $50, your taxable portion is $50 *1/3 = $16.67 and the non-taxable is $33.33.
Next year, your non-taxable portion is $200 - $33.33 = $166.67 and so on.
Thank you. By "non-taxable portion" do you mean the following? That is, if next year the BOY value of the RRIF is $250, the taxable ratio is ($250-$166.67)/$255=1/3?
It looks constant if the BOY valuation is simply the previous year balance minus the distribution. But unless i take my distribution on December 31, there could be variance, right?

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