Comments on: Using RRSP Contribution Room to Avoid Taxes http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/ Investing and Personal Finance Fri, 10 Sep 2010 18:15:57 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Mr. Cheap http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-50244 Mr. Cheap Mon, 14 Dec 2009 16:14:08 +0000 http://www.moneysmartsblog.com/?p=4657#comment-50244 WestcoastFP: I *DO* like the brackets. WestcoastFP: I *DO* like the brackets.

]]> By: WestcoastFP http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-50133 WestcoastFP Mon, 14 Dec 2009 08:47:16 +0000 http://www.moneysmartsblog.com/?p=4657#comment-50133 Dude, you always, gotta be, like.... surfing the brackets, dude! (Me, trying to talk like a surfer.) Money - liquid, is worth more than money locked in and registered. So always consider taking out registered funds up until the point you reach the next tax bracket. Especially, prior to retirement. This is a great example of someone working the tax brackets to their legal advantage. Narly, dude! Dude, you always, gotta be, like…. surfing the brackets, dude! (Me, trying to talk like a surfer.) Money – liquid, is worth more than money locked in and registered. So always consider taking out registered funds up until the point you reach the next tax bracket. Especially, prior to retirement.
This is a great example of someone working the tax brackets to their legal advantage.
Narly, dude!

]]> By: This and That: Popular Christmas Toys and more… | Canadian Capitalist http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-50024 This and That: Popular Christmas Toys and more… | Canadian Capitalist Sun, 13 Dec 2009 20:19:57 +0000 http://www.moneysmartsblog.com/?p=4657#comment-50024 [...] you’ll be earning a lot less next year than you did this year, you could smooth your income and pay less in taxes by using RRSP contribution room to defer taxes. A word of warning: If you do use RRSP to smooth your income, you’ll be losing RRSP [...] [...] you’ll be earning a lot less next year than you did this year, you could smooth your income and pay less in taxes by using RRSP contribution room to defer taxes. A word of warning: If you do use RRSP to smooth your income, you’ll be losing RRSP [...]

]]> By: Canadian Personal Finance Blog » Blog Archive » Random Thoughts: I Dare You! http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-49289 Canadian Personal Finance Blog » Blog Archive » Random Thoughts: I Dare You! Fri, 11 Dec 2009 07:11:13 +0000 http://www.moneysmartsblog.com/?p=4657#comment-49289 [...] Pillars points out there is a very large difference between Using RRSP Contribution Room to Avoid Taxes and using it to EVADE taxes (first is encouraged, second gets you in deep [...] [...] Pillars points out there is a very large difference between Using RRSP Contribution Room to Avoid Taxes and using it to EVADE taxes (first is encouraged, second gets you in deep [...]

]]> By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-49221 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 11 Dec 2009 00:56:22 +0000 http://www.moneysmartsblog.com/?p=4657#comment-49221 [...] Four Pillars explains another way to use RRSPs to reduce taxes. [...] [...] Four Pillars explains another way to use RRSPs to reduce taxes. [...]

]]> By: Jess http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-49060 Jess Thu, 10 Dec 2009 16:43:58 +0000 http://www.moneysmartsblog.com/?p=4657#comment-49060 Thanks Mr Cheap & Traciatim for clarification! =) Thanks Mr Cheap & Traciatim for clarification! =)

]]> By: Jess http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-49057 Jess Thu, 10 Dec 2009 16:32:45 +0000 http://www.moneysmartsblog.com/?p=4657#comment-49057 Sorry, I wasn't clear. Yes, Interest on a loan for your RRSP is not tax deductible. However, money borrowed to earn non-registered investment income may be deductible. This is why it may make sense to use extra cash to contribute to your RRSP and borrowed funds for non-registered investments. Sorry, I wasn’t clear. Yes, Interest on a loan for your RRSP is not tax deductible. However, money borrowed to earn non-registered investment income may be deductible. This is why it may make sense to use extra cash to contribute to your RRSP and borrowed funds for non-registered investments.

]]> By: Mr. Cheap http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-49054 Mr. Cheap Thu, 10 Dec 2009 16:28:03 +0000 http://www.moneysmartsblog.com/?p=4657#comment-49054 Traciatim: Sorry for repeating your point, I started to respond before you'd written your second comment then got distracted (should have refreshed before posting my comment :-) ). Traciatim: Sorry for repeating your point, I started to respond before you’d written your second comment then got distracted (should have refreshed before posting my comment :-) ).

]]> By: Mr. Cheap http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-49052 Mr. Cheap Thu, 10 Dec 2009 16:26:53 +0000 http://www.moneysmartsblog.com/?p=4657#comment-49052 Jess: Actually, the withholding goes all the way up to 30% (http://www.wheredoesallmymoneygo.com/rrsp-withdrawals-are-subject-to-withholding-taxes/ ). This 10, 20 or 30% isn't the actual tax you pay (it's remitted on your behalf to CRA like paycheck deductions). The taxes you pay will be based on your marginal tax rate in the year of withdrawal. As Traciatim points out, you can't deduct interest on an RRSP loan. Jess: Actually, the withholding goes all the way up to 30% (http://www.wheredoesallmymoneygo.com/rrsp-withdrawals-are-subject-to-withholding-taxes/ ). This 10, 20 or 30% isn’t the actual tax you pay (it’s remitted on your behalf to CRA like paycheck deductions). The taxes you pay will be based on your marginal tax rate in the year of withdrawal. As Traciatim points out, you can’t deduct interest on an RRSP loan.

]]> By: Traciatim http://www.moneysmartsblog.com/using-rrsp-contibution-room-to-avoid-taxes/comment-page-1/#comment-49046 Traciatim Thu, 10 Dec 2009 16:10:52 +0000 http://www.moneysmartsblog.com/?p=4657#comment-49046 Also Jess, those are the withholding rates which help you not have a huge tax bill the following year when making withdrawals (kind of like the withholding on a paycheck). You are taxed at your marginal rates on RRSP withdrawals. http://www.cra-arc.gc.ca/tx/rgstrd/rrsprrif-reerferr/wthhldng-eng.html Also Jess, those are the withholding rates which help you not have a huge tax bill the following year when making withdrawals (kind of like the withholding on a paycheck). You are taxed at your marginal rates on RRSP withdrawals.

http://www.cra-arc.gc.ca/tx/rgstrd/rrsprrif-reerferr/wthhldng-eng.html

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