How to Avoid Tax Hikes When Withdrawing RRIFs

This is the first year I am required to withdraw some money from my RRIF account. However, that amount along with CPP and OAS will bump me up to almost $90K. I am probably not eligible to contribute to my spouse's RRSP, so are there any other ways to reduce my tax burden to CRA? 

The RRSP is just about the only vehicle available to most taxpayers for retroactive planning. You can still contribute to your spouse’s RRSP if she is under 72 and you have contribution room. 

Depending on your spouse’s income levels though, you may be able to benefit from the election to split pension income. Your RRIF income will be eligible pension income and you can elect to split up to half of it with your spouse when you file your return.

Also, consider assigning some of your CPP benefits to your spouse to equalize tax on that income. CPP entitlements earned while married can be shared with your spouse by applying to Service Canada for pension income sharing.

If you have any income from non-registered savings, you might want to consider transferring those funds to a TFSA. That way, those earnings will not be taxable and this will reduce both your tax bill and your OAS clawback. You can fund up to $25,500 for yourself and $25,500 for your spouse if you don’t have a TFSA yet. An additional $5,500 can be added to each of these accounts on January 1, 2014 for a total of $31,000 each.