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Our response:

When you withdraw funds from your RRSP or RRIF, in most cases, you will trigger a tax event given the special tax status of registered accounts. The dividend tax credit is a non-refundable tax credit that applies when Canadian dividends are included as part of your taxable income.

You may find the retirement planning and understanding tax hubs on GetSmarterAboutMoney.ca helpful to build your knowledge in these areas. We encourage you to speak with a registered financial representative or tax professional for tailored investment advice.