Liquidating RRSP. Value $62k CAD. I live in the states now.
I can pay 25% in taxes ( $15,295 ) or do section 217 and file a return as a non resident.
Would section 217 work out better? I would still mostly be in the Canadian federal tax bracket of 15%, but would provincial, CPP or other taxes apply? Just trying to do some quick math here to see which would make sense.
RRSP withdraw non resident. Eat the 25% or do section 217?
Moderator: Mark T Serbinski CA CPA
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Re: RRSP withdraw non resident. Eat the 25% or do section 217?
To use 216, you must essentially have no other income.
Then, it simply becomes a calculation. If it is better use it, if not, drop it.
Then, it simply becomes a calculation. If it is better use it, if not, drop it.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Re: RRSP withdraw non resident. Eat the 25% or do section 217?
I meant 217. Instead of provincial tax, you pay a federal surcharge. You do however, if your other income is low enough (ie. you are not working in US), you get to claim all eligible deductions, including medical expenses.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best