Bonus: Take as cash or RRSP?

[eblend]

Hi guys,

I think I know the answer, but will ask anyways.

At work we can allocate how our bonus is paid out, either cash, or into RRSP. I normally take cash, and then transfer to RRSP myself. The end result is the same right? It's not like going directly to RRSP I will get any more money correct?

Thanks

[Masked Bandit]

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Hi guys,

I think I know the answer, but will ask anyways.

At work we can allocate how our bonus is paid out, either cash, or into RRSP. I normally take cash, and then transfer to RRSP myself. The end result is the same right? It's not like going directly to RRSP I will get any more money correct?

Thanks

Assuming you don't get any kind of employer matching bonus or anything like that I don't see a difference either way?

[Disoblige]

It's the same. Direct is just a simpler way of doing it if you're going to contribute the cash to RRSP anyways.

[eblend]

Cool that's what I figured. The employee matching portion is already maxed out throughout the year, this is just bonus allocation. I figured it would be the same either way, just wan't 100% sure. Thanks

[realazy]

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Cool that's what I figured. The employee matching portion is already maxed out throughout the year, this is just bonus allocation. I figured it would be the same either way, just wan't 100% sure. Thanks

Well it's the same in the end after you get your tax return. By putting it directly into RRSP, you technically get the taxed portion invested for a few months more assuming you file sometime in March/April.

[Xtrema]

1) You take cash, tax upfront, refund when you file, free loan to the government between paid out and tax refund.

2) You put it into group RRSP, no tax upfront, no refund at the end.

If you owe taxes, I would do #1. If you know you have a refund coming already, I would do 2.