Taking distributions from Non-Reg and putting in RRSP

If RRSP contributions make sense in your overall situation (overall high income, TFSA maxed etc.), then yes, do it.

xgbsSS wrote: ↑ If RRSP contributions make sense in your overall situation (overall high income, TFSA maxed etc.), then yes, do it.

TFSA is maxed out. Still lots of room in RRSP. Marginal tax rate around 32%. I should come out ahead.

rfd911 wrote: ↑ TFSA is maxed out. Still lots of room in RRSP. Marginal tax rate around 32%. I should come out ahead.

I'm glad you started this thread because it's something I considered a while back. I did a quick reading on it but never went beyond that to make any decisions.

Seeing this post has made me rethink and reexamine my situation to see if it's a wise idea for both my wife and I to do this.

Generally you want to contribute to a RRSP when in a high tax bracket and withdraw when in a lower tax bracket.
If you are just at 32% tax I doubt you should contribute it to a RRSP if you already have a maxed TFSA and some non-reg. It sounds like you would still be in a 32% bracket at retirement or possibly even higher.
It's hard for someone else to decide what your income in retirement might total up to which you need to know to see what tax bracket you would be in when you take the money back out of the RRSP.

BetCrooks wrote: ↑ Generally you want to contribute to a RRSP when in a high tax bracket and withdraw when in a lower tax bracket.
If you are just at 32% tax I doubt you should contribute it to a RRSP if you already have a maxed TFSA and some non-reg. It sounds like you would still be in a 32% bracket at retirement or possibly even higher.
It's hard for someone else to decide what your income in retirement might total up to which you need to know to see what tax bracket you would be in when you take the money back out of the RRSP.

Sorry my bad. My marginal tax rate for this year would be around 43%. Forgot to include the rental income.

Why would you have non-registered investments if your RRSP isn't maxed out yet?

bubak wrote: ↑ Why would you have non-registered investments if your RRSP isn't maxed out yet?

Because I got it lump sum not too long ago, and I want to generate monthly income which I may or may not need every month.

OP your question is best answered by examining the content in this link.

https://www.retailinvestor.org/RRSPmodel.html

BetCrooks wrote: ↑ Generally you want to contribute to a RRSP when in a high tax bracket and withdraw when in a lower tax bracket.
If you are just at 32% tax I doubt you should contribute it to a RRSP if you already have a maxed TFSA and some non-reg. It sounds like you would still be in a 32% bracket at retirement or possibly even higher.
It's hard for someone else to decide what your income in retirement might total up to which you need to know to see what tax bracket you would be in when you take the money back out of the RRSP.

No, even if you are in the same marginal tax bracket, it still can be beneficial to put money into the RRSP
-Can consider earlier retirement if good returns are archived and funds can be withdrawn at a lower tax bracket
-Creditor protection on RRSP assets
-Increased cashflow through increased return on tax return
-Decreased taxable income/tax filing required on non-registered assets
-Utilization of pension amount on taxes upon RRIF conversion
-Utilization of HBP and LLP

People focus too much on the pitfalls of the RRSP. I would argue that people should utilize it and just be cognizant of the tax treatment and start decumulating the assets when ready to do so in the future.