RE:RE:Anyone else drinking the kOol Aid!bcsc wrote: Hi YQTlandind, just a word of caution to you and anyone else holding PYR (and or HPQ) in an RESP, that may not be the ideal account to hold a stock with such massive potential.
Two years ago our youngest finished university. Since he and his siblings are years away from aging out, I decided to re-invest the remaing balance in something more risky, PYR and HPQ, which I already held in other accounts. The >1000% increase has created a potentially signiificant tax liability.
All RESP contributions have been withdrawn, so unless one of the kids decides to get further education, we will require an AIP to withdraw the funds. An AIP is subject to tax at your marginal rate AND a surtax of 20%, and all funds must be withdrawn within the calander year of the first AIP. The only way to avoid the surtax is to transfer the funds to a contributor's RSP (must have sufficient contribution room).
Yes I know this is a good problem to have, but a problem none the less. Fortunately with 8 years left to accumulate RSP room before the youngest ages out we may be able to amass enough RSP contribution room. I don't mind paying tax at the marginal rate but I begrudge the 20% surtax. Beware unforeseen consequences.
Good Luck
Thanks for the information. My daughter is in medical school now, one of four years to go then residency. I know that I will have to pull all before she finishes in August 2024.
Please check your in box as I have other questions, you seem knowledgeable. I have done much reading/research etc..and I will contact an accountant for advice prior to filing her taxes. I know she'll be taxed heavily.