Disability, income splitting and tax reduction
Q: My wife has been diagnosed with a chronic condition known as Fibromyalgia, so she can’t work anymore (she’s 49). My plan is to retire at 65 (I’m 57) and we plan to have about $1 million saved in registered accounts (about 85% in my name). Can you recommend a tax efficient approach to drawing down the registered funds so that it reduces the impact on other benefits like OAS?
A: There are a bunch of different considerations here, Rob, so bear with me, as this will be one of my longer Ask a Planner answers. Before I jump right to income splitting in retirement, I think there are a few other pertinent points.
I assume if your wife was entitled to any short-term or long-term disability benefits through a workplace or private disability insurance policy, you have already pursued those. But I want to make sure you have also considered other government and income tax benefits that are available now, long before retirement. Read More...
Source Courtesy: https://www.moneysense.ca
Article was originally published on: January 15, 2019