Quote:
Originally Posted by Slava
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).
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Hi Slava,
Thanks for the answer. I fully understand the RRSP portion. I don't plan to touch that. I'll hold the stock for the growth potential and the enjoy the DRIP.
The stock in the non-registered investment account vested over the course of time and are a combination of my stock contribution and the employee match. At the end they were transferred into the Non-RRSP. How would they determine the capital gains on it? They were purchased over the course of many months and years...