My ex and I cannot agree on this one point.
At date of separation, I had $90,000 in RRSP's and my ex had $50,000 for a combined total of $140,000. I have agreed to rollover an equalization payment of $20,000 using the T2220 form so that we each leave the marriage with an equal amount in RRSP's $70,000 each.
My ex states that she needs the cash and wants me to pay her $20,000 outside of the RRSP. But if I cash out $20,000, I will incur taxes on that balance at around 40% But she claims that her payment should be tax free.
Am I not correct that she is entitled to either $20,000 within the RRSP or $20,000 less approx 40% tax ($12,000)outside of the RRSP?
At date of separation, I had $90,000 in RRSP's and my ex had $50,000 for a combined total of $140,000. I have agreed to rollover an equalization payment of $20,000 using the T2220 form so that we each leave the marriage with an equal amount in RRSP's $70,000 each.
My ex states that she needs the cash and wants me to pay her $20,000 outside of the RRSP. But if I cash out $20,000, I will incur taxes on that balance at around 40% But she claims that her payment should be tax free.
Am I not correct that she is entitled to either $20,000 within the RRSP or $20,000 less approx 40% tax ($12,000)outside of the RRSP?
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