Will I receive tax-free dividends from my plan?

Q - If I generate $2,000 in a partial conversion RRIF (I'm 66) will I receive that $2,000 in dividends tax-free? – Beth M.

A – No. All money withdrawn from a RRIF or RRSP is considered to be regular income and taxed at your marginal rate. I think you are confusing this with the pension income amount. That allows you to claim a tax credit for the first $2,000 of pension income you receive. If you are 65 or older, RRIF income qualifies.

Do you have a money question you'd like to ask Gordon? Find out how to submit it here and then check out our Money section regularly to see if it was chosen for a response. Sorry, we cannot send personal answers.

Do you have a money question you'd like to ask Gordon? Find out how to submit it here and then check out our Money section regularly to see if it was chosen for a response. Sorry, we cannot send personal answers.

Copyright 2018 ZoomerMedia Limited