Sid Bentley has a RRIF account. The withdrawals for the RRIF account are based on his spouse's age. His spouse is five years younger than he is. This year, the minimum amount that Sid must withdraw from his account is $25,000. However, because his granddaughter's wedding is scheduled for this year, he wants to make a withdrawal of $40,000 to help out with some of the wedding expenses. He also wants to give a handsome gift to the newlyweds. Which of the following is true?
A. Minimum withdrawals from a RRIF are tax-exempt, so Sid will have to pay tax on $15,000 only.
B. Since a withholding tax will be deducted on the excess of $15,000 that he withdraws, he needs to pay tax on $25,000 only.
C. Since the RRIF is based on his spouse's age, his spouse will be taxed on the RRIF withdrawal.
D. Sid will have to include the $40,000 as income this year; his calculated tax will be offset by the withheld tax.
