Should I transfer my RRIF money to a non-registered plan to avoid OAS clawbacks?

Jamie Golombek, vice-president of taxation and estate planning at AIM Trimark Investments, has the answer.

Jamie Golombek 16 June, 2003 | 1:00PM
Dear Expert:

I am age 65 and retired. With the CPP, OAS and my income from non-registered sources, I do not need any extra cash from an RRSP now or from a RRIF when I turn 69. In order to avoid a clawback of OAS in the later years and to avoid the fact that the government may take 46% of what is left in my RRIF at death, I plan to start to withdraw from my RRSP this year and re-invest in my non-registered plan. I would withdraw money systematically, so that there would be no investments left in my RRIF when I turn 80. I am anticipating I would live beyond age 80, since there is a long life history in my family. In your opinion, is this a viable plan of action?

Expert Answer:

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Jamie Golombek

Jamie Golombek  

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