Personal Finance

RRSP first 60 days contribution limit

  • Last Updated:
  • Jan 11th, 2019 2:30 am
Sr. Member
Aug 17, 2013
538 posts
357 upvotes
Toronto
kasm wrote:
Jan 10th, 2019 10:58 pm
I think what they mean is that someone making 6 figures and maxes their rrsp every year until they retire at 65 can end up with a huge rrsp balance if investing well. This could easily hit $2-3 million. Once they turn 72 they are required to convert to a rrif and have mandatory withdrawals, resulting in both OAS claw backs and large tax implications.
You still come out ahead as you're deferring your high end income at the highest tax bracket every year then if you withdrawal in the future, your first 70 k will still be taxed lower. Even if you get taxed at the higher income brackets, it's a wash. no gain or loss except that you're saving money instead of spending it more useless stuff.

Top