Tax rules, thresholds and administrative procedures can change. Confirm current official requirements and obtain advice for material transactions or unusual facts.
The final working years are a planning window
High employment income can make RRSP deductions valuable, but large RRSP balances can create mandatory RRIF withdrawals later. Model at least ten years rather than maximizing one year's refund.
Map every income source
List workplace pensions, CPP, OAS, RRSP/RRIF, TFSA, non-registered investments, rental income and corporate withdrawals. Identify which amounts are flexible and which begin automatically.
Bridge years
A person retiring at 60 may have several low-income years before CPP, OAS or pension income begins. Planned RRSP withdrawals during these years can reduce later RRIF balances and use lower tax brackets.
Corporate owners
An owner-manager should coordinate salary, dividends, corporate investments and the sale or wind-down of the company. Leaving every dollar in the corporation without an exit plan can create future tax and estate complexity.
Spouse and survivor planning
Pension splitting, spousal RRSPs, beneficiary designations and the first death can change household tax significantly. Model both spouses together and then the survivor alone.
Checklist
Confirm retirement date, debt repayment, emergency cash, health coverage, pension options, CPP/OAS start dates, RRSP-to-RRIF timeline, TFSA room, estate beneficiaries and powers of attorney. Update the plan annually.
This article provides general Canadian tax information and is not a substitute for tax, legal, financial or investment advice based on complete circumstances.