Re: Re: Re: Overcontribute to RRSP?
Quote:
Originally posted by eblend
Basically, the main question is this, say my dad makes 60k per year, the first $10,320 isn't taxed at all, so the remaining 50k is taxed. Say from that 50k he gets taxed $10k. If he that same year contributed 50k into his RRSP he will get all 10k back, what if he decides to contribute 60k that year, is there any benefit to that? He has already got all the taxes back that he paid that year, will contributing more yeild any benefit (outside of the compound interest on the actual interest paid)
Nope. And depending on your current income/expected income you usually only contribute enough to not pay taxes in the higher tax brackets. Obviously if you don't expect to be making money in the higher brackets you should use up your existing room. It's not very hard to work out the exact math, but a financial planner can help you if you're unsure.
Re: Re: Re: Re: Re: Re: Overcontribute to RRSP?
Quote:
Originally posted by dezmarez
haha what are you talking about?
he said it exactly how it is...
limit is 21k in a given year for RSP contribution...
so you make 1,000,000 the most you can put in is 21k...
now say you dont contribute to your RSP over 3 years...
and build up contribution room of 60k,
you can put all 60k in one shot!!!
stop spreading miss information
No, that is not true. The maximum contribution limit for 2009 is 21k no matter how much your contribution limit is.
Re: Re: Re: Re: Re: Re: Re: Overcontribute to RRSP?
Quote:
Originally posted by Nigel Mansell
No, that is not true. The maximum contribution limit for 2009 is 21k no matter how much your contribution limit is.
:facepalm: Technicalities. Yes the limit FOR 2009 IS 21K, but he can still use his unused portions from previous years on the 2009 tax return.
Re: Re: Re: Re: Re: Overcontribute to RRSP?
Quote:
Originally posted by Nigel Mansell
Don't listen to this guy, he is full of s h i t! You can only put in 21k for the 2009 tax year, any more than 2k over that limit and there are severe tax implications.
:facepalm:
Go back to your UK tax system, Nigel or learn to use google before calling someone out :rofl:
Quote:
The maximum RRSP deduction limit for 2009 is $21,000. However, if you did not use all of your RRSP deduction limit for the years 1991-2009, you can carry forward the unused amount to 2009. Therefore, your RRSP deduction limit for 2009 may be more than $21,000.
http://www.tax-services.ca/rrsp-canada.html
This is the reason why some people like to save their contribution room and not use it until they are into higher/highest income bracket.
And Tik Tok just confirm what I said, once you get maximum return for the year, there's no incentive to overcontribute other than the minimum effect of compound interest.
Don't ever question an Asian about money and how to screw the government out of taxes. :rofl:
Re: Re: Re: Re: Re: Re: Overcontribute to RRSP?
Quote:
Originally posted by Xtrema
:facepalm:
Go back to your UK tax system, Nigel or learn to use google before calling someone out :rofl:
http://www.tax-services.ca/rrsp-canada.html
This is the reason why some people like to save their contribution room and not use it until they are into higher/highest income bracket.
And Tik Tok just confirm what I said, once you get maximum return for the year, there's no incentive to overcontribute other than the minimum effect of compound interest.
Don't ever question an Asian about money and how to screw the government out of taxes. :rofl:
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Fair enough, I'm man enough to admit when I'm wrong.