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What is the effect on income-tested government benefits?

April 26, 2017Benefits government income-tested

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What is the effect on income-tested government benefits?

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One of the biggest criticisms of the current RRSP system is that when funds are withdrawn upon retirement, not only are they taxed at the retiree’s marginal tax rate, but in many cases the withdrawals affect the retiree’s eligibility for income-tested government benefits and credits. These may include the Age Credit, the Guaranteed Income Supplement (GIS) or even Old Age Security (OAS) benefits.