Severance Package and RRSP? What to do?
Hi All,
I am new here and need some help.
I just lost my job and was giving a decent severance package (6mo). I've been fortunate to find and star a new job that pays around the same within a week.
Now, I am wondering what should be the best approach to make sure I don't have to pay a huge tax bill next year. I have for habit to always max out my RRSP contribution at the end of the year. However this year, I am wondering if I should not hold on and wait for next year (2016) to contribute more to my RRSP.
Since my income for 2016 will be 1.5 times more than usual (will take me to the 46% marginal tax bracket) and that severance package is only taxed to 30%, I worry I will have a large tax bill next year...
Any advice?
I am new here and need some help.
I just lost my job and was giving a decent severance package (6mo). I've been fortunate to find and star a new job that pays around the same within a week.
Now, I am wondering what should be the best approach to make sure I don't have to pay a huge tax bill next year. I have for habit to always max out my RRSP contribution at the end of the year. However this year, I am wondering if I should not hold on and wait for next year (2016) to contribute more to my RRSP.
Since my income for 2016 will be 1.5 times more than usual (will take me to the 46% marginal tax bracket) and that severance package is only taxed to 30%, I worry I will have a large tax bill next year...
Any advice?