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Get money out of your RRSP tax free

Deposit your RRIF withdrawal into your RRSP for more savings

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5 Responses to “Get money out of your RRSP tax free”

  1. chris says:

    In case any readers think you would NOT be in the same position because you would have received another RRSP contribution credit ….. you need to understand that the tax credit is not a benefit or of value. It is a loan. See http://www.retailinvestor.org/RRSPmodel.html for detailed argument.

  2. chris says:

    The idea to re-contribute back into the RRSP is bogus. It would put you back exactly where you started from. Either your $$ is better off inside, or outside, the plan. If it is better off inside the plan, don't do anything. If it is better off outside then take it out and leave it out. Use this spreadsheet http://www.retailinvestor.org/OutorIn.xls The first tax rate variable would be 0% .

  3. chris says:

    I agree that for many retired people, withdrawing RRSP $$ before you have to, to create pension income in order to make use of the pension income credit , is a good idea, as long as the subsequent income earned on that $$ is taxed at very low rates. — Taxes on w/d are cancelled out by the pension income credit.

    But the idea to re-contribute back into the RRSP is bogus. It would put you back exactly where you started from. Either your $$ is better off inside, or outside, the plan. If it is better off inside the plan, don't do anything. If it is better off outside then take it out and leave it out. Use this spreadsheet http://www.retailinvestor.org/OutorIn.xls The first tax rate variable would be 0% .

  4. Mike says:

    Contributing to Childs RSP talks about TFSA not RSP ?? Da

  5. King says:

    Probably good tips, but it sounds so complicated!! Anyway I'm only 40 now so I probably don't need to be worried about it now.