In early April I posted a series of advanced planning threads on the new #FHSA acct. Below is a thread of threads, including the link to the starting post of each of those threads, plus more. PS - Sorry in advance for all of the Vince McMahon memes. I won't do that next time 😅

Before age 60… just be careful. There are clawback rules if the account had received grants/bonds in the past 10 years. After age 60 everything vests. The portion of a withdrawal that is attributed to being a return of your contributions is tax free, the balance is taxable. In most cases withdrawals (called LDAPs) flow out after age 60 in a methodology similar in nature to how RRIFs work.

That would be covered in the LIRA / LIF sections above, if they were defined contribution plans. If they are defined benefit pensions that are paying a monthly income, then that will be fully taxed as income, but can be split up to 50% with a spouse at any age. Also gives way to the pension amount tax credit.

Yes, it’s a taxable disposition on your date of death (unless you deemed it a disposition when your child was added to the account and truly transferred beneficial ownership at that time, but I assume this was not the case)…. Their cost base going forward would be equal to the market value on your date of death (ie. the ‘proceeds’ of the above noted disposition which would be reported on your final tax return). Also there should be clarity on the intent. Was the intent to be a gift to that child? Or was the intent that it would form part of your estate and then be subject to your Will (or intestacy 😮). These details are important and it’s these details that can tear families apart if it’s left subject to differing interpretations later on). Document this stuff so all parties have clarity.

@strohs16 $100k version

@davidsmi You bet!

@CGEyesYedOpen Yes

@blair8000a It is 33%. I’m talking up from 60, you’re talking down from 65.

@2021Northern Thanks! I agree on the LIF, I wish I could still edit the post.

@RazorOil 🤑

@canuck_rob Appreciated.

@2021Northern @Zecco9999 That’s a good add on, thx! I had interpreted the original question under the context of already having used the annual EAP limit of ~$29k (or at least hitting the threshold with the car) so I just jumped to the requirement for the car to be used for transportation to school.

@davidsmi That’s right. Sometimes it depends on how the withdrawal is structured, for example a forced RRIF minimum might be subject to 15% while a periodic withdrawal 25%. But what you’re saying is right.

@JasonWattBCC Thanks Jason!

RT @JasonWattBCC: The initial post is top-notch, but the Q&A that follows is 🔥

@darren_lubedude Asked here already.

@borisrozinov I excluded this because I see these items as income earned within the non-reg, and not really the same as making a ‘withdrawal’ (ie. transferring money out of non-reg to bank account)

@RazorOil @BubleQe Thanks guys! Right back at you!

@3commas3 If the subscriber has RRSP room they can transfer up to $50k of the growth to the RRSP. It’s still taxable when withdrawn from the RRSP/RRIF but they can curtail the 20% penalty.

@roicmatters @Wayne_Howatt Definitely the benefits of deferral (for those who will invest it and not spend it) are more profound for those who have low investment risk tolerances.