Comments on: 2 Minutes Guide to Last Minute RRSP for 2009

By: The Financial Blogger

The Financial Blogger — Thu, 05 Aug 2010 02:22:59 +0000

@Qian,

you can contribute to your RRSP in 2010 and deduct your contribution in your 2010 tax report. Nothing is wasted

By: qian

qian — Thu, 05 Aug 2010 02:13:46 +0000

If 2010 is my last year of working, does that mean that 18% of my 2010 earned income is “wasted” as far as tax deduction is concerned since I could only use 18% of 2009 income?

By: Personal Financial Planning this Week | Personal Investment Management and Financial Planning Blog Directory

Fri, 05 Mar 2010 07:49:01 +0000

[...] Financial Blogger presents 2 Minutes Guide to Last Minute RRSP for 2009 posted at The Financial Blogger, saying, “You need to make your RRSP contribution before the [...]

By: The Financial Blogger

The Financial Blogger — Fri, 19 Feb 2010 23:24:54 +0000

@Guylaine, if you do so, you won’t be taxed too much but you will lose this rrsp contribution right forever (you can’t put back money that has been withdrawn from RRSP unless you do it to buy your first home or to go back to school under certain conditions).

@Sofia, yes you can do it. However, the money must be invested in a RRSP account for at least 90 days to qualify under the HBP.

@François, you can withdraw up to a maximum of 25K each under the HBP, the rest of the money invested in your RRSP will only serve for your retirement. If you prefer to get a bigger cash down (I suggest you get at least 20% to avoid CMHC fees), you can invest your money into a TFSA (tax free savings account).

By: The Rat

The Rat — Fri, 19 Feb 2010 22:37:57 +0000

@Guylaine. Good question. I’m pretty positive that once you spend some of your RRSP money, you don’t get that contribution room back.

By: François

François — Fri, 19 Feb 2010 21:05:40 +0000

technical question. It’s about the HBP.

My future wifie and I have each $40,000 and more in our RRSP and are in the highest tax bracket. We are planning to buy a house but still didn’t find the “one”, For next year contribution, what should we do in order to have our tax credit by contributing and put money aside for the cash down?

Thank you.

By: Sofia

Sofia — Fri, 19 Feb 2010 20:39:18 +0000

Can I put my down payment into my RRSP, get the tax deduction, and then take it out to buy the house? Until when can I contribute in my RRSP to use the Home Buyer’s Plan?

Thanks!

By: Guylaine

Guylaine — Fri, 19 Feb 2010 20:30:52 +0000

Yes. Do you lose your rights as a contribution on the amount that has been withdrawn from the RRSP?

By: The Rat

The Rat — Fri, 19 Feb 2010 19:51:01 +0000

From what I can gather, if you withdraw any RRSPs,while your employment income is low, it is generally a good time to withdraw during this time, if that is what you are looking to do. Regardless, there will likely be a hold back of some sort and come tax season, if you are owed, you will be reimbursed.

If you know you’re salary is going to eventually increase, you can still contribute to RRSPs and get a refund provided you have contribution room left over to invest, which will sent to you by Revenue Canada in the mail.

Hope this helps

By: Guylaine

Guylaine — Fri, 19 Feb 2010 19:46:06 +0000

If my employment earnings were low during the last year, can I withdraw an amount from amy RRSP without paying high taxes, and refund the following year when my revenues will be higher (hopefully), and get then a tax return?