LIF/ 50% one time withdrawal

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artistic95
Posts: 25
Joined: Wed Sep 26, 2012 12:27 pm
Location: Lake Wales, Florida,33859

LIF/ 50% one time withdrawal

Post by artistic95 » Thu Jan 31, 2019 3:22 pm

I am a US/CDN retired citizen living full time in US. No longer required to file CDN tax returns.
Have both a RIF and a LIF. Understand there is a one time 50% withdrawal or transfer to RIF from LIF
allowable. Are there any tax implications? Does it effect normal minimum or maximum annual withdrawal
allowances or is it in addition to the norm ?

Please also advise on non resident CDN tax withholding rates on RIF?LIF withdrawals, minimum and maximum.

Thank you
Artistic95
Thanks, Artistic95

nelsona
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Re: LIF/ 50% one time withdrawal

Post by nelsona » Fri Feb 01, 2019 8:27 am

If the transfer is not taxable in Canada it is not taxable in US.

Once you begin wirthdrawing from LIF/RRIF, the withholding in Canada is flat 15% assuming you are making under 10% per year withdrawals.
US will tax the entire withdrawal, giving you credit for the Cdn tax.
You must advide your RRIF LIF trustees that you are US resident, And you must report these accounts on FBAR etc.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
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Re: LIF/ 50% one time withdrawal

Post by nelsona » Fri Feb 01, 2019 8:28 am

A withdrawl of lump sum would be 25%withheld in Canada, and fully taxable in US. with credit given for the CDn tax.
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artistic95
Posts: 25
Joined: Wed Sep 26, 2012 12:27 pm
Location: Lake Wales, Florida,33859

Re: LIF/ 50% one time withdrawal

Post by artistic95 » Mon Feb 04, 2019 3:43 pm

Nelsona, Thank you, Apparently I can apply to financial institution for a one -time TRANSFER to my RRIF from my LIF since I am a
US resident and no longer pay tax in Canada. Is that transfer tax free?
I already maxed out my 15% withdrawals.
Thank you
Thanks, Artistic95

nelsona
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Re: LIF/ 50% one time withdrawal

Post by nelsona » Mon Feb 04, 2019 8:32 pm

It is a transfer, it is tax free.
But why would you want to do this?

Are you instead talking of a transfer from a LIRA (or LIF) to a RRIF? That "releases" the money from the restrictive LIF, to a more flexible RRIF. You seem to be talking about doing it the other way round. There are many forms that do this. Not the other way.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

artistic95
Posts: 25
Joined: Wed Sep 26, 2012 12:27 pm
Location: Lake Wales, Florida,33859

Re: LIF/ 50% one time withdrawal

Post by artistic95 » Tue Feb 05, 2019 12:40 pm

Nelsona, I am talking about a one time transfer tax -free from a LIF to a RIF of 505 of LIF to reduce the amount restricted in the LIF.

Does that make sense?

THANKS AGAIN<
Thanks, Artistic95

nelsona
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Re: LIF/ 50% one time withdrawal

Post by nelsona » Tue Feb 05, 2019 8:48 pm

Yes. It was your later statement that you were transferring form RIF to LIF that confused me.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

artistic95
Posts: 25
Joined: Wed Sep 26, 2012 12:27 pm
Location: Lake Wales, Florida,33859

Re: LIF/ 50% one time withdrawal

Post by artistic95 » Sun Feb 10, 2019 4:28 pm

Thank you
Thanks, Artistic95

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