tag:blogger.com,1999:blog-5465015914589377788.post3068425386300370028..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Exploiting RRSP Tax ConfusionMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-5465015914589377788.post-31850651239834205232015-04-09T11:25:18.799-04:002015-04-09T11:25:18.799-04:00@Ck: Certainly.@Ck: Certainly.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-78327719363537601162015-04-08T17:55:38.295-04:002015-04-08T17:55:38.295-04:00Instead of having it avoid tax and going into RRSP...Instead of having it avoid tax and going into RRSP it I alright to be taxed and then put in my TFSA?Cknoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-3022161467749113702012-09-17T21:01:38.537-04:002012-09-17T21:01:38.537-04:00So I have 20,000 in savings. If I put it into rrs...So I have 20,000 in savings. If I put it into rrsp's.... Will I get some return come tax time?<br /><br />Then after the money has made money for me... I can use it as a downpayment on a home - tax free... Then put that value back at 1/15th per Annum... <br /><br />If you had 20,000 / had rrsp's / wanted to buy a house - what would you do?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-12558320988325517662012-09-17T09:10:39.345-04:002012-09-17T09:10:39.345-04:00@Joe: I'm not sure what you mean by "off...@Joe: I'm not sure what you mean by "off the grid", but assuming you just mean $20,000 in non-registered savings, then what you suggest is possible -- you just have to watch out for the rules that require a delay from the last RRSP contribution to the first-time home-buyer's plan withdrawal. This required delay time has changed at least once over the years. I'd suggest looking at the CRA web page for the home-buyer's plan.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-80539117120561352722012-09-17T03:26:05.700-04:002012-09-17T03:26:05.700-04:00What if you had $20,000 saved off the grid... Want...What if you had $20,000 saved off the grid... Wanted to put it into your rrsp and get the tax benefit year end and then use the $20,000 as a deposit for a first time home buyer ?? Possible ? Ideas how to make $20,000 benefit me thru rrsp?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-85329516694604497032012-07-05T12:08:03.253-04:002012-07-05T12:08:03.253-04:00@Michael: It's much the same as asking for les...@Michael: It's much the same as asking for less taxes to be taken out of your regluar pay because you regularly make RRSP tax contributions. IE: you don't want to give the government a free loan while you wait to file your yearly taxes and get a big refund back.Paul Thttps://www.blogger.com/profile/13940923642549254886noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-69124817388883911162012-07-05T12:07:23.917-04:002012-07-05T12:07:23.917-04:00@Patrick: Perhaps I didn't explain things cle...@Patrick: Perhaps I didn't explain things clearly enough, but I meant that she would use her $9000 in existing savings plus the after-tax bonus amount of $11,000 to make a $20,000 RRSP contribution.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-36897945126348663632012-07-05T11:57:44.858-04:002012-07-05T11:57:44.858-04:00I think you meant she could use her savings to mak...I think you meant she could use her savings to make a $29,000 contribution?<br /><br />One question: would this idea mean chewing up an additional $9k of contribution room? Does the direct pre-tax contribution save her $9k of room?Patrickhttps://www.blogger.com/profile/16816252455472704262noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-63784841787037282432012-07-05T11:19:24.698-04:002012-07-05T11:19:24.698-04:00@Paul T: I've never worked for an employer th...@Paul T: I've never worked for an employer that offered this service, but it makes a lot of sense.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-87925577022453281362012-07-05T10:20:59.205-04:002012-07-05T10:20:59.205-04:00This isn't unique to group plans. The company...This isn't unique to group plans. The company I work for will also do this when requested. They cut a cheque for your bonus (the full amount) payable to to your personal RRSP account at your bank. You hand deliver the cheque for deposit into your RRSP account. <br /><br />Of course, you don't get a refund for that RRSP contribution, as you used Pre-Tax dollars to make the depositPaul Thttps://www.blogger.com/profile/13940923642549254886noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-82303364324138287332012-07-04T12:02:15.259-04:002012-07-04T12:02:15.259-04:00@Paul: You're not too far off. The MERs rang...@Paul: You're not too far off. The MERs range from 1.5% to 2%. This is better than some, but still painfully high.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-28408270274258388412012-07-04T11:13:15.301-04:002012-07-04T11:13:15.301-04:00I'm sure that work RRSP P.Plan also has a very...I'm sure that work RRSP P.Plan also has a very attractive MER/IMF of around 2.5% to further destroy your contribution in a segregated fund going nowhere slowly.paulhttps://www.blogger.com/profile/00050081178673700867noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-81719747724001614882012-07-04T00:57:15.454-04:002012-07-04T00:57:15.454-04:00@Daryn,
It sounds like your experience has been w...@Daryn,<br /><br />It sounds like your experience has been worse than mine. I haven't exactly been happy with the response time to my T1213 forms, but I've had responses within a month.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-73897554446204463612012-07-04T00:11:38.349-04:002012-07-04T00:11:38.349-04:00Although just to note for any readers who haven...Although just to note for any readers who haven't done the T1213 before, don't expect it to be done in a couple of weeks before year end or anything like that.<br />Generally it's always seemed to take a generous 2 months for me to get the approval letter back, at least from my local tax office.Darynnoreply@blogger.com