Input page: is where you will input most of the information used by the
calculator.
Results page: You can modify the RRSP withdrawal amount for any particular year on
this page. It shows your Net
Disposable Income (cash in your pocket), as well as ending balance of
investments, for both the RRSP scenario and TFSA scenario, and the difference
between the two. It also shows any
clawback of Old Age Security, and shows an estimate of Guaranteed Income
Supplement to which you may be entitled.
Use your browser print function to print the pages
of the calculator - preview before printing.
Enter data in the yellow cells, from top to
bottom. Recalculation is automatic
when you move to another cell. Warnings may appear (shown in red), for which you will have to make
changes.
About you
Choose province or territory
AB
BC
MB
NB
NL
NS
NT
NU
ON
PE
QC
SK
YT
Your age at prior year end (must be 17 or
older)
Current and future income (Do not include CPP, OAS,
RRSP/RRIF/TFSA, or eligible Pension income)
Current annual gross income
Estimated
annual gross income per year AFTER starting withdrawals from RRSP/RRIF or
TFSA, excluding eligible pension income which is entered after CPP and OAS
income:
- Include estimated withdrawals from
already existing RRSPs/RRIFs
CPP and OAS income
CPP begins at age (minimum 60, maximum 70)
60
61
62
63
64
65
66
67
68
69
70
See your CPP statement of contributions for your estimated
CPP retirement pension amount at age 65.
See our CPP Retirement Pension
Calculator to determine what your CPP amount will be.
Eligible pension income from other sources (eligible for
pension tax credit)
Don't
forget that eligible pension income can be split with a spouse.
Estimated annual eligible pension income
(e.g. company pension, RRIF)
Begins at age
RRSPs and RRIFs
Amount of annual RRSP contribution that
will be made (may have to be reduced - see TFSA section below)
Age at which to convert RRSPs to RRIF (max
is 71)
Although
in reality contributions to an RRSP can be made until age 71, for purposes of
this calculator no more deposits can be made after the RRSP is converted to a
RRIF. The maximum number of years that
contributions can be made is (age at which you convert to a RRIF, minus
current age)
Number of years to make contributions
Estimated return on RRSP/RRIF or TFSA
The last deposit will be made in the year
in which you turn (max 71)
Minimum withdrawals from your RRIF will
begin in the year in which you turn
You can start your actual withdrawals
earlier than this, but not until after your deposits are finished.
How many years do you want the RRSP/RRIF to
last after withdrawals are started? (1 to 50)
If you would like to enter a different withdrawal
amount in any year in which deposits are not being made, you can do this in
the yellow input cells on the Results page. Remember to press the Calculate button after making your
entries.Note that if the desired withdrawal is less than the
minimum withdrawal, the minimum withdrawal will be used.
Tax-Free Savings Account (TFSA)
Annual deposits are calculated based on your RRSP
contribution less your tax savings.
Your tax savings in first year is
Amount of TFSA deposit in first year (RRSP
contribution less tax savings) - max $5,500
If you look at the "Results" page, you
will see which type of account provides income for more years - the RRSP or
the TFSA.
Note that if income is low enough, at age 65+,
for Guaranteed Income Supplement (GIS) to be received by the taxpayer, it is
very likely that there will be other benefits available that are not
reflected by the calculator. These
benefits could include low-income tax reductions, health care benefits, etc.
Notes:
If you already have an RRSP that will be
converted to a RRIF, the income from the RRIF after age 65 would be included
in "eligible pension income from sources other than above
RRIF". This information is needed,
because RRIF income is eligible for the pension income tax credit for age
65+. For this reason, it is wise to
convert at least a portion of your RRSPs to a RRIF at age 64 or 65.
Withdrawals from the TFSA are equal to the RRSP/RRIF
withdrawal less tax on the withdrawal.
If the RRSP/RRIF is reduced to zero before the
TFSA, the calculator shows a withdrawal of the remaining balance of the TFSA
in the following year. This just
highlights how much is remaining in the TFSA at that time.
The tax calculation is for a single person with
no dependents, using 2013 tax rates and credits known as of December 22,
2012.
Tax credits included in the calculation:
Basic
personal amount
Age
amount, and SK senior supplementary amount
Pension income amount
QC
federal tax abatement
There are no low income tax credits or refundable
tax credits included in the calculation.
For links to articles which provide information
on many of the factors used above, go back to the TFSA vs RRSP Calculator
information page, which should still be open in your browser.