Tax questions from Canadian citizen in the US

[nelsona]

Only in a RRIF do you get 15% on the first 10%, but the 10% has to be withdrawn first at 15%, and then the rest at 25%. But you can only do this in the calendar year AFTER you set up the RRIF.

So, you set up your RRIF in 2018 (its too late for this year) and it ends up worth $75K on Dec. 31, 2018. In January 2019, you can take up to $7500 at 15% tax, and then the rest at 25%.

[iristopher]

Thanks for the quick response! I already have RRIF account opened and ready to role over RRSP into RRIF, which can be complete before 12/31/2017. In this case, can you confirm that I can collapse RRIF in January 2018 in the following order?
1. On 1/1/2018, withdraw 10% with 15% withholding tax.
2. On 1/2/2018, withdraw the rest with 25% withholding tax.

[nelsona]

Yes. It will not get done on the 1st obviously, but certainly by the end of January you should have all your funds as you describe.