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View Full Version : How much willl I get back if I do RRSP?



eblend
02-28-2009, 09:19 AM
Hello,

I was hoping to get my damn T4 before the RRSP deadline so I can calculate how much money I would get back, but my stupid ass company always waits till the end of the fucking month to send it out, and they did like 2 days ago....so waiting for it...maybe it will come monday. Is the deadline March 2nd Midnight or is there a different time?

Anyways, since I can't really calculate much myself, maybe someone can give me a ballpark figure.

Say I make 60k per year, and have NEVER contributed to RRSP but have about 23K that I can contribute according to the government. I will be buying a house this year and want to take advantage of their "First Time Home Buyer" program which allows me to take 20g out interest free from my RRSP. If I contribute 20G into my RRSP right now...assuming no other deductions or anything....how much should I get back as tax return approximately?

xrayvsn
02-28-2009, 09:36 AM
http://www.ey.com/GLOBAL/content.nsf/Canada/Tax_-_Calculators_-_2008_RRSP_Savings

jigten
02-28-2009, 09:37 AM
Assuming you are living in Alberta,

At 60k, you are at the 32% tax bracket, (22 fed & 10 Ab.) so for every dollar of your rrsp contribution, it reduces your income by that amount and you should get 32% of your rrsp back as tax refund.

cheers

Jlude
02-28-2009, 09:59 AM
Originally posted by xrayvsn
http://www.ey.com/GLOBAL/content.nsf/Canada/Tax_-_Calculators_-_2008_RRSP_Savings

great link!

eblend
02-28-2009, 10:24 AM
Originally posted by xrayvsn
http://www.ey.com/GLOBAL/content.nsf/Canada/Tax_-_Calculators_-_2008_RRSP_Savings

wow awesome link! So I am looking at about 6k back, not bad not bad. Thanks everyone for the info

KappaSigma
02-28-2009, 06:00 PM
Originally posted by jigten
Assuming you are living in Alberta,

At 60k, you are at the 32% tax bracket, (22 fed & 10 Ab.) so for every dollar of your rrsp contribution, it reduces your income by that amount and you should get 32% of your rrsp back as tax refund.

cheers

Not entirely true. At some point your RRSP ded will bring your tax bracket down and you will not get 32% anymore. Than you will finally get to your personal exemption level.

richardchan2002
02-28-2009, 06:19 PM
Originally posted by eblend


wow awesome link! So I am looking at about 6k back, not bad not bad. Thanks everyone for the info

The number in that link is the tax savings not the return amount. You could see less than (or more than) 6k depending on the deductions your company made on your paychecks in 2008.

redevil
02-28-2009, 06:24 PM
I wish that companies were required to have the T4's out at least a week before the RSP deadline. :dunno:

Or wish the Government could extend the RSP deadline a week past the time required for companies to have the T4 slips out.

:banghead:

KappaSigma
03-01-2009, 10:00 AM
Originally posted by redevil
I wish that companies were required to have the T4's out at least a week before the RSP deadline. :dunno:

Or wish the Government could extend the RSP deadline a week past the time required for companies to have the T4 slips out.

:banghead:

Its not hard to figure out your current RRSP con limit. Take your 2007 NOA which has last years than your last pay stub at year end and times the gross by 18%. Added that to last years and give you a close idea going forward.

ps - minus any contributions you might have made monthly or as part of your employment (if they match, etc).

The_Rural_Juror
03-01-2009, 10:48 AM
Originally posted by eblend
I will be buying a house this year and want to take advantage of their "First Time Home Buyer" program which allows me to take 20g out interest free from my RRSP. If I contribute 20G into my RRSP right now...assuming no other deductions or anything....how much should I get back as tax return approximately?

You can take out 25,000 now. Keep that in mind. Also, there is a lifetime overcontribution limit of 2,000 if you need to top up.

eblend
03-01-2009, 10:59 AM
Originally posted by The_Rural_Juror


You can take out 25,000 now. Keep that in mind. Also, there is a lifetime overcontribution limit of 2,000 if you need to top up.
F

25k for the home buyer program?

Can you expain the 2000 overcontirbution limit?

If I can do 25k I will do another 5K for the 2009 tax year and will be golden

The_Rural_Juror
03-01-2009, 11:06 AM
$2,000 lifetime over-contribution limit

If after receiving your statement from CRA, you find that you've made contributions in excess of your contribution limit, there is a "safety net". Over-contributions can remain in your plan without penalty as long as the excess balance is $2,000 or less. (If your over-contribution exceeds $2,000, you may be assessed a penalty of 1% per month on the excess amount.) While you won't get a tax deduction for any over-contribution in the year it is made, you can claim it as part of your contribution limit in subsequent years.

Source: http://www.tdcanadatrust.com/rsp/regs.jsp



Home Buyers' Plan (HBP)

The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

Under proposed changes, for 2009 and subsequent years, withdrawals made after January 27, 2009, the maximum is increased to $25,000.

I was under the impression that it was finalized, but it still says proposed. :dunno:

Source:http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

tsi_neal
03-01-2009, 12:24 PM
My understanding is that your current contribution limit is based on the previous years taxable income. IE. 2008 contributions are based off 2007 income, and that the contribution year is march-feb. In other words everyone is still currently making 2008 contributions based on 2007 income, which is shown on your last notice of assesment ( 2007 tax year). Therefore income made in 2008 has no bearing on what your currently allowed to contribute.

ee2k
03-01-2009, 06:21 PM
Originally posted by eblend

F

25k for the home buyer program?

Can you expain the 2000 overcontirbution limit?

If I can do 25k I will do another 5K for the 2009 tax year and will be golden

... and I am sure you are aware that you have to repay back the $ you take out of RRSP under the Home Buyer plan ...

eblend
03-01-2009, 08:14 PM
Originally posted by ee2k


... and I am sure you are aware that you have to repay back the $ you take out of RRSP under the Home Buyer plan ...

ofcourse, but over a 10 year period in equal payments without any interest I can't compain. Something like 166 bucks a month is not a big deal

The_Rural_Juror
03-01-2009, 08:29 PM
Actually it's 15 years.


Chapter 2 - Repaying your withdrawals

Over a period of no more than 15 years, you have to repay to your RRSPs the amounts you withdrew under the HBP. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew, until the full amount is repaid to your RRSPs. Your repayment period starts the second year following the year you made your withdrawals.

Source:http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-e.html#P323_32321