Quote:
Originally Posted by DoubleF
Eh, not quite. Basically the funds have to be unloaded from the RRSP/RRIF before deciding what to do. Basically for tax purposes you have to get rid of the tax deferral component associated with amounts in an RRSP/RRIF. After it's done, you can decide what to do again whether that's re-investing in a TFSA, non-registered, gifting to beneficiaries etc. doesn't matter.
That's why you want a plan to withdraw over multiple years to rid yourself of that tax deferral attribute to save tax (opposite of the RRSP deduction when it first went in) vs risking it all comes out at the same time and instead of saving taxes using the tax deferral attribute, you're paying more taxes instead if it's all taxed right away on a terminal return with no ability to rollover.
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That is my exact point. Managing tax deferred accounts is something you need to consider independent of whether you're looking to proactively move money to family members.
Some of this happens automatically through minimum withdrawals. Those get to be rather large by the time the retiree is in their 90's.