Quote:
Originally Posted by JackJack
Question:
Unsure if it is related...if not apologies and please move to correct thread.
When I was with my former company, I was able to match stock contribution up to X % into Non-Registered and Registered. I split the contribution amount (so as to not over contribute and be penalized in RRSP). When I ended up leaving my company, the Registered were transferred over from Canadian Stock Transfer to my RRSP account. The Non-Registered were transferred into an Investment account with the same bank.
Currently, the shares of that former company are sitting in kind in the investment account. If I sell those shares and withdraw the money will I be taxed?
Thanks
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If you withdraw the money from the RRSP you are taxed as though it's income. You will have an amount of tax withheld there that is 10% below $5000, 20% above that and below $15,000 and then 30% above that.
The non-registered could be taxed if you have gains and then you are paying capital gains tax which is on half of the gains. So if you had a $1000 gain you pay taxes on $500.
I think what you are saying is that they are held in the non-reg account, so that would mean that you might have capital gains taxes payable in your situation (which would apply when you sell the investments and realise that gain, even if you don't withdraw the funds).