Personal Finance

How to figure out optimal RRSP contribution

  • Last Updated:
  • Feb 26th, 2018 1:26 pm
[OP]
Sr. Member
May 20, 2010
796 posts
107 upvotes

How to figure out optimal RRSP contribution

So my wife has some RSU's/Stock Options that vested a while ago that we feel would be a good time to cash part of them out at - roughly $270k worth. We'd like to put a good portion towards our RRSP's, and maybe our mortgage as well (TFSA's are already maxed out). We both have roughtly 75k contribution room after our 2017 deposits.

Are there any tips or calculators on how to maximize our return? Perhaps it's not worth it to max out our RRSP's for 2018 as we won't get enough back as a tax refund?

Any tips, or suggestions on where to look, or who to talk to?

Her salary is about 100k plus bonus, 80k for me, if that helps.

Thanks!
6 replies
Deal Fanatic
User avatar
Dec 27, 2009
7392 posts
4664 upvotes
Victoria, BC
You can always make the contributions and then play around with the tax software to figure out how much to deduct for 2017 and how much to carry forward.
[OP]
Sr. Member
May 20, 2010
796 posts
107 upvotes
No reason to think so at this point in the foreseeable future, at least.
Sr. Member
Aug 20, 2015
514 posts
303 upvotes
Toronto
So if you don't think you're going to be pushing your incomes that much in the foreseeable future, the next tax bracket (Ontario as an example) would be $70,000. I'd probably claim to get to this point, and defer the rest to future years.
Newbie
Mar 4, 2015
53 posts
33 upvotes
Montreal
And just in case OP isn't aware (based on the phrasing of "max out our RRSP"), contribution is not the same thing as deduction. You can contribute as much as you want up to the cap to get tax deferred growth, AND you can carry the deduction to any point in the future. You can try to optimize to only claim for the highest tax bracket you're in but remember the time value of money, it may not be worth it to carry if you can't get a higher refund in the future.

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