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Old 03-19-2018, 12:19 PM   #3
Raekwon
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Join Date: Nov 2007
Location: Airdrie, Alberta
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Quote:
Originally Posted by Slava View Post
Well you have things basically correct in the first sentence, where there is a deemed disposition at death. So someone dies and has $100k in their RRSP and this is added to their income. If they passed away today for example, they would have whatever income they have for the year so far, plus that $100k for their 2018 income (and other things that could apply in their situation).

I think what you are talking about is withholding tax? If you were to withdraw money from the RRSP they hold back tax money upfront (10% under $5k, 20% between $5k-$15k and 30% over $15k essentially).
The banks hold it back? I understand the heavy taxation on it but was under the impression that it was up to the estate to do the taxes and not the bank to withhold the money. If the banks do it they must provide a slip of some sort for taxes?

Edit: Also possible that I'm thinking of beneficiary payments on RRSP and the bank not holding back taxes.
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