What to do with my small RRSP
Facts:
- $16000 currently sitting in a TD RRSP GIC, making next to nothing and maturing at the end of this month. Upon maturity it will not be rolled over but be parked in a so called TD daily interest registered account, which also makes nothing but it isn't locked in.
- <$5000 is the 2014 contribution room, which I haven't used yet. Am pondering right now whether I should or not before the deadline (small contribution room due to DB pension- for now anyway.)
- stopped working some time in the year 2014. currently on a long term leave from my job, during which time I've had and will have zero to menial income (a student now). After this period (approx 2 yrs), will most likely (try to) return to the public sector.
- age: going on 30, plan to retire at 55 with 32 yrs of service IF I buy back the 2 yrs of service where I was on leave, 30 if not.
Question :
While I am a student I will have less than 10k income (mostly a sum of menial interest earned from terribly unattractive, risk free investments, but I am a risk averse female). Should I withdraw my 16k rrsp during the two years when I have <10k income so that I don't have to pay tax on the amount withdrawn (less withholding tax, but I don't mind that so much knowing it's not a huge amount and I will get it back again when I do my taxes, given my low income). What I am a but concerned about is the loss of contribution room.
or, should I move this money to a more attractive RRSP option (not sure what though, any suggestions welcome), and possibly just transfer it to buy back 2 years of service when I return to work? That will be 2 transfers, I guess I will have to absorb some service fees.
Any suggestions welcome, thanks
- $16000 currently sitting in a TD RRSP GIC, making next to nothing and maturing at the end of this month. Upon maturity it will not be rolled over but be parked in a so called TD daily interest registered account, which also makes nothing but it isn't locked in.
- <$5000 is the 2014 contribution room, which I haven't used yet. Am pondering right now whether I should or not before the deadline (small contribution room due to DB pension- for now anyway.)
- stopped working some time in the year 2014. currently on a long term leave from my job, during which time I've had and will have zero to menial income (a student now). After this period (approx 2 yrs), will most likely (try to) return to the public sector.
- age: going on 30, plan to retire at 55 with 32 yrs of service IF I buy back the 2 yrs of service where I was on leave, 30 if not.
Question :
While I am a student I will have less than 10k income (mostly a sum of menial interest earned from terribly unattractive, risk free investments, but I am a risk averse female). Should I withdraw my 16k rrsp during the two years when I have <10k income so that I don't have to pay tax on the amount withdrawn (less withholding tax, but I don't mind that so much knowing it's not a huge amount and I will get it back again when I do my taxes, given my low income). What I am a but concerned about is the loss of contribution room.
or, should I move this money to a more attractive RRSP option (not sure what though, any suggestions welcome), and possibly just transfer it to buy back 2 years of service when I return to work? That will be 2 transfers, I guess I will have to absorb some service fees.
Any suggestions welcome, thanks