Income deducted from LTD (Investment Income & RRSP)

[Jill1]

I’ve read a bit and seems as though RRSP may be deducted from LTD monthly payments. Does anyone know for sure and do they check our income tax? I would like to take some out for extra money and to move to a TFSA.

[jammer]

No RRSP income isn’t deducted (I guess the policy could specifically say they will, ask the insurance company).
Besides, your just moving it between tax sheltered investments, it is not really income.

RRSP Withdrawal and effect on CPPD and LTD

If you take money out of an RRSP, will your CPP Disability and LTD be reduced by the amount taken out? My policy states: “If necessary, the amount of your benefit will be further reduced so that your total income from all sources does not exceed 85% of your pre-disability gross earnings (net earnings, if your benefit is non-taxable). All sources include those sources stated above and any benefit you are entitled to receive from: ! any group, association or franchise plan ! any retirement …

Can cpp disability stop benefits for moving retirement funds?

Small Lira , Followed Ontario rules for unlocking. The bank moved an existing Lira temporarily to a LIF to then moved it to an rrsp. The funds sitting in the temporary LIF issued a t4rif. No money was withdrawn and the LIF was closed within a few weeks when the money was moved to the rrsp. No monies have been withdrawn from the rrsp either as evidenced from the bank paperwork and income tax return. Can cppd stop paying benefits because that t4rif was generated from the bank process? Simply moved…

Is email response from insurer admissible in court?

If you ask your insurer something via email and they respond via email, is the response admissible in court? Eg. If you ask if something is deductible from ltd and they respond via email that it isn’t and then they do deduct it from ltd, is the email significant? I’m thinking of withdrawing from my RRSP (I get CPP-D and LTD).

Do a forum search for ‘RRSP’.
They don’t have access to our income taxes but you don’t want to hide things from them.
Investment income is ok too but I’d get the insurance company’s opinion.
Do you have your benefit booklet?
If not, get it from your employer.
It should say what they can deduct.

[mrshastri]

I hope my investments and RRSP and TFSA does not affect my LTD and CPP-D. I would be very annoyed if it did.

[jammer]

They definitely won’t affect your CPP-D.

[mrshastri]

I am now wondering if my regular taxable investment will affect my LTD and/or my CPP-D.

I will do some investigation.

[jammer]

@mrshastri

I am now wondering if my regular taxable investment will affect my LTD

If it is not from working then I doubt it will.

I got a yearly bonus while I was on ltd so I asked my insurance company if it would be deducted.
They said it wasn’t.
Each policy is different and I don’t think it hurts to ask.

[mrshastri]

You are correct again. Every policy is different.

Thanks again for your input. Have a pleasant weekend.