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Gold/Mining/Energy : TAXES, TAXATION, TAX and Canadian stocks -- Ignore unavailable to you. Want to Upgrade?

To: Kayaker who wrote (256)	11/8/2000 2:17:00 PM
From: Stockbull	Respond to of 548

The day you withdraw from an RRSP you are taxed at a set rate,depending on the amount withdrawn.At the end of the year the amount withdrawn is added into Income,but you have a Income tax credit for the tax they took off when you withdrew from the RRSP.That is my understanding..hope it helps.

To: Kayaker who wrote (256)	11/8/2000 2:27:28 PM
From: Jordan Levitt	Respond to of 548

<<I don't get that. Tax on a withdrawal is at your marginal rate. The withholding at the time of the withdrawal may be lower but the tax is at your marginal rate. >> Two reasons... a)Most people, but certainly not all, are at a lower tax rate when they are retired, and are withdrawing from a RIF. b)Tax rates in general seem to be heading lower. Even if they were not, you get a deduction against income when you contribute, you then pay tax on withdrawals as income. If you never made a dime in your RSP, this alone would make it worthwhile. A simple rule of thumb in finance is "a dollar today is worth more than a dollar tomorrow". The lesson is that when you have to pay taxes would be, " a dollar deferred is a dollar saved" One more thing: as we age we tend need income more than capital gains. a RIF is the best environment for handling this.