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Sponsoring parents. Use RRSP to replace annual min income.

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Alawrence

Newbie
Jul 4, 2016
4
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Hello

I really need help with a question I have about meeting the annual min income.

I applied the family sponsorship this year 2016. I had no problem meeting the min income preciously. However I decide to take a year off due to personal reasons (2016) therefore I won't have any employment income for this year. However I plan to withdraw my RRSP this year to replace the employment income.

I will be back to work next year therefore it is only this year that I had to do this.

Does anyone know if this is OK with CIC? anyone who had similar experience or know someone that had similar experience?

Really really need help. I will call the call center but I really don't trust if the info they give will be accurate. So I rather hear from someone who has experienced this.
 
Re: Use RRSP to replace annual min income.

Who are you planning to sponsor? A spouse, or your parents?
 
Alawrence said:
Hello

I really need help with a question I have about meeting the annual min income.

I applied the family sponsorship this year 2016. I had no problem meeting the min income preciously. However I decide to take a year off due to personal reasons (2016) therefore I won't have any employment income for this year. However I plan to withdraw my RRSP this year to replace the employment income.

I will be back to work next year therefore it is only this year that I had to do this.

Does anyone know if this is OK with CIC? anyone who had similar experience or know someone that had similar experience?

Really really need help. I will call the call center but I really don't trust if the info they give will be accurate. So I rather hear from someone who has experienced this.
Click to expand...
http://www.cic.gc.ca/english/resources/manuals/bulletins/2013/ob561.asp
Evidence of income limited exclusively to documents issued by the Canada Revenue Agency (CRA) (R134(1.1)(a));
Click to expand...

How are you intending to comply with this requirement?
 
Hello

Thank you so much for the link and info, I looked at the requirement under (CRA) (R134(1.1)(a));

(1.1) Subject to subsection (3), for the purpose of clause 133(1)(j)(i)(B), the sponsor’s total income shall be calculated in accordance with the following rules:
a.the sponsor’s income shall be calculated on the basis of the income earned as reported in the notices of assessment, or an equivalent document, issued by the Minister of National Revenue in respect of each of the three consecutive taxation years immediately preceding the date of filing of the sponsorship application;

However my understanding is when I withdraw RRSP, it is taxed and reported as income on line 150 Notice of Assessment which count towards the income for that year. I have alreay met the income requirement for 2015 (I was employed), and I will be countinuing employment for year 2017, it is only this year 2016 I will need to withdraw my RRSP to report as income. The above paragraph stating income has to be earned as reported in the NOA, I feel the RRSP is also earned income and will be reported on NOA, therefore it meets the above requirement. Am I understanding this correctly?
 
Alawrence said:
Hello

Thank you so much for the link and info, I looked at the requirement under (CRA) (R134(1.1)(a));

(1.1) Subject to subsection (3), for the purpose of clause 133(1)(j)(i)(B), the sponsor’s total income shall be calculated in accordance with the following rules:
a.the sponsor’s income shall be calculated on the basis of the income earned as reported in the notices of assessment, or an equivalent document, issued by the Minister of National Revenue in respect of each of the three consecutive taxation years immediately preceding the date of filing of the sponsorship application;

However my understanding is when I withdraw RRSP, it is taxed and reported as income on line 150 Notice of Assessment which count towards the income for that year. I have alreay met the income requirement for 2015 (I was employed), and I will be countinuing employment for year 2017, it is only this year 2016 I will need to withdraw my RRSP to report as income. The above paragraph stating income has to be earned as reported in the NOA, I feel the RRSP is also earned income and will be reported on NOA, therefore it meets the above requirement. Am I understanding this correctly?
Click to expand...

They ask to fill finacial form to many people. Thier u have to list as what r u doing in this period. Take just break may not be good reason to satisfy the officer
 
Alawrence said:
Hello

I really need help with a question I have about meeting the annual min income.

I applied the family sponsorship this year 2016. I had no problem meeting the min income preciously. However I decide to take a year off due to personal reasons (2016) therefore I won't have any employment income for this year. However I plan to withdraw my RRSP this year to replace the employment income.

I will be back to work next year therefore it is only this year that I had to do this.

Does anyone know if this is OK with CIC? anyone who had similar experience or know someone that had similar experience?

Really really need help. I will call the call center but I really don't trust if the info they give will be accurate. So I rather hear from someone who has experienced this.
Click to expand...

Alawrence, did you figure out the answer to your question?
I'm in the same situation and looking for an answer for exactly the same question
 
I am in the same boat and curious if anyone else has successfully used RRSP to augment total income.
 
Anyone did this??? Plz answer ?
 
The LICO are pretty low to begin with. If you have to cash in your retirement savings that should indicate that you are not in the financial position to support your parents. RRSPs shouldn’t be cashed out unless it is more of a life and death situation or you are temporarily using it out down a down payment. Your parents wouldn’t want you affecting your retirement savings and losing money to bring them to Canada a year or two earlier.
 
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Does anyone have an update if they used the RRSP successfully complement the income?
 
amusingfirefly said:
Does anyone have an update if they used the RRSP successfully complement the income?
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I did. I ended up choosing to say no to probiding my SIN numbers and printed off my NOAs instead. The Notice of Assessments don’t separate out the different income. Just the total from Line 150.


canuck78 said:
The LICO are pretty low to begin with. If you have to cash in your retirement savings that should indicate that you are not in the financial position to support your parents. RRSPs shouldn’t be cashed out unless it is more of a life and death situation or you are temporarily using it out down a down payment. Your parents wouldn’t want you affecting your retirement savings and losing money to bring them to Canada a year or two
Click to expand...

I am financially stable and have no issues liquidating some of my RRSPs other than losing a small amount of interest. I did put a chunk right back into my RRSPs.
 
Elaine amj said:
I did. I ended up choosing to say no to probiding my SIN numbers and printed off my NOAs instead. The Notice of Assessments don’t separate out the different income. Just the total from Line 150.




I am financially stable and have no issues liquidating some of my RRSPs other than losing a small amount of interest. I did put a chunk right back into my RRSPs.
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You do have to breakdown your salaries so if you look at salaries versus line 150 I hope visa officers investigate a bit more. Cashing in RRSPs are not a consistent form of income so shouldn't be counted. Hopefully if CIC realizes it is being done they will addd RRSPs on the list of income that does not count towards LICO. I don't think they thought anyone would actually cash out their RRSP.
 
Elaine amj said:
I did. I ended up choosing to say no to probiding my SIN numbers and printed off my NOAs instead. The Notice of Assessments don’t separate out the different income. Just the total from Line 150.




I am financially stable and have no issues liquidating some of my RRSPs other than losing a small amount of interest. I did put a chunk right back into my RRSPs.
Click to expand...

Thanks for sharing, @Elaine amj . I am not sure if providing or not providing the NOA will make a difference, coz the NOA Line 150 will still have the RRSP income included in it. We will see. For now, I'm just giving them permission to access my NOA.
 
RRSP is currently counted towards LICO. I know a few people sponsoring parents who had a small RRSP withdrawal counted towards LICO (both NOA and SIN provided). But that was very small amount. I haven't seen anyone that showed entire year's income as RRSP. At the very minimum, I think this will create doubts in an officer's mind if you will still comply with income requirements the next year so it is likely IRCC will check your income again towards the end of application. But if you will be back to work and will comply with income requirements with regular income, I personally don't see any problem.
 
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