The LLP student can be either yourself or your spouse. You can participate in both programs at the same time. The LLP allows up to 10 years for repayment of the amount borrowed. Every year, a tenth of the total borrowed amount must be repaid at a minimum. You can make accelerated payments to pay back the borrowed sum faster. On the other hand, if you pay a lower amount than the minimum expected for a particular year, the difference will be added to your income and taxed at your marginal rate for that year.
Alternatively, the surviving spouse and the legal representative of the deceased can make an election for the repayments to be taken over by the surviving spouse. Payments are due, at the latest, by the fifth year after you made the first withdrawal under the program. In most instances, repayments will be required before this date. For example, if you cease to be a student, CRA expects you to start repaying by the second year after the year you stop being a student.
To confirm the year your repayments must start, Canada Revenue Agency has an online tool here. Simply answer the series of questions to know when to start paying. The contribution must be made in the repayment year, or within the first 60 days of the following year.
Now, if you have non-registered funds that can use to fund your education, that may be a better option than your RRSP, depending on your current and future income maybe you have started to draw pension benefits, for example, and your non-registered investment income is highly taxed. And while this is a complicated suggestion to make without all the facts, you may benefit from just taking outright RRSP withdrawals to help fund your education—for example, if your income is low now and will be higher in the future.
Maybe you have a deferred pension, or your spouse will have a generous pension in the future that can be split with you.
If your income is low now, withdrawals from your RRSP will be taxed at your current low rate. Retirement income planning is highly personalized and situation-specific. He does not sell any financial products whatsoever. Your email address will not be published.
Comments Cancel reply Your email address will not be published. The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. National Bank and its partners in contents will not be liable for any damages that you may incur from such use. This article is provided by National Bank, its subsidiaries and group entities for information purposes only, and creates no legal or contractual obligation for National Bank, its subsidiaries and group entities.
The details of this service offering and the conditions herein are subject to change. The hyperlinks in this article may redirect to external websites not administered by National Bank.
The Bank cannot be held liable for the content of external websites or any damages caused by their use. Views expressed in this article are those of the person being interviewed. They do not necessarily reflect the opinions of National Bank or its subsidiaries. For financial or business advice, please consult your National Bank advisor, financial planner or an industry professional e. Back to hub.
Sign up for our newsletter to get recent publications, expert advice and invitations to upcoming events. All rights reserved. To order copies of Toronto Star articles, please go to: www.
Report an error. Journalistic Standards. About The Star.
0コメント