tax return 2008 & RRSP


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DP_gta   
Member since: Dec 07
Posts: 64
Location: GTA

Post ID: #PID Posted on: 23-01-08 18:55:58

Those who fly high are blinded by the sun. I personally do not advocate GIC but they are very safe. After deducting tax you are left with almost nothing. You want to look at a good balance fund or a dividend fund, they are faring well even at these times. They give you better returns then money market or GIC.

On RRSP- HBP deal, to calculate RRSP room, take her income and multiply that by 18% or $19,000 for this year which ever is less. You can do a spousal split (income split is for income tax savings) depending on what RRSP room she has.

Just a few words of caution to take HBP you must a first time buyer or buying a home after 4 years of not owning one. furthermore all withdrawals must take place within 13 months from 1 January of the year of first withdrawal. The fund withdraw ed should have been contributed to RRSP at least 90 days prior.

Yes together you can withdraw upto $20,000 for buying a qualifying home. I can help you better if I know the specifics.

Send me a PM for more. Glad to be of help.



chinai91   
Member since: Dec 06
Posts: 11
Location:

Post ID: #PID Posted on: 24-01-08 10:41:24

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[PratickM]Please do not advertise in Charcha.
Post offers of your professional services in the Classified section.
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santy4   
Member since: Apr 05
Posts: 19
Location: U.A.E.

Post ID: #PID Posted on: 25-01-08 01:07:21

Hi,

Future migrant here.....Funny for you guys but serious qts. for me , what is RRSP?

Provide link, if possible.....would luv to do some investment before landing.....Is it practically possible?

Regards,

Santy



Kadambari   
Member since: Jan 08
Posts: 5
Location: Down to Earth

Post ID: #PID Posted on: 03-02-08 11:58:58

22-01-08 16:17:49

nari
Location: Spousal RRSP contribution and withdrawal under HBP

I have a question wrt to my wife is not under high tax bracket. Can i make contributions of RRSP under her name to take advantage of reaching 20000 maximum limit that we could withdraw under Home buyers plan. I have already reached 20000$ limit in my RRSP contributions towards previous years. This year i am eliglibe to invest about 10000$ under RRSP my question can i invest under my wifes name and cliam the deduction from my income.

Thanks

Nari

From your question I gather that
1. You are in a higher bracket income
2. Your wife is in a lower tax bracket
3. You have plans to contribute to upto$10k in RRSP before the deadline and
4. You are also planning to make withdrawal under Home buyers plan pretty soon.

When your spouse is in a lower tax bracket, it is advisable to make contribution to spousal RSP. Under spousal RSP the contibutor - you get the contribution tax credit and the owner of the plan is the other spouse(wife). with certain limits when she withdraws the money from the RSP shw would be liable to pay the tax on the withdrawal amount (withdrawal amount from RSP is added to her that year's taxable income).

Under HBP first time home (personal/family residence) owners/buyers can make a tax free withdrawal from RSP. A spousal RSP plan is a very useful planning tool here as it would allow both you and your spouse to separately withdraw the max 20k allowed towards your home purchase.

There are some very important restrictions which need to be ketp in mind before making the supposed withdrawals, failing which the withdrawal amounts can be added to the income and taxed accordingly.

hope this clarifies.




dp_jain   
Member since: Jan 04
Posts: 418
Location: Brampton

Post ID: #PID Posted on: 04-02-08 22:14:56

Well, lot of discussion and different opinions. Any CD member who wants to know more about RRSP and Investments can call me or Anu in my office any time at 905-908-9935/905-674-9494 or if wish can set up an appointment. Please note this is totally obligation free consulting and no one is under any obligation to take my services in any way.


-----------------------------------------------------------------
Live and Let Live. Together we can make a difference.

DP JAIN, CPA, CGA, CPA (US), CA(I), LL.B.(I)
416-305-0080
(Loans, Mortgage, Tax, Accounting, Investments)


MeagainMe   
Member since: Aug 06
Posts: 208
Location:

Post ID: #PID Posted on: 09-02-08 20:25:38

Thanks a lot guys for your valuable inputs :)

Hopefully I'll be able to decide something in this regard before the deadline ..i.e. 29th feb



MeagainMe   
Member since: Aug 06
Posts: 208
Location:

Post ID: #PID Posted on: 09-02-08 21:05:37

I was going thru another post on the website:
http://www.canadiandesi.com/read.php?TID=13215&page=3

where it says that the RRSP contributions will be taxable after turning 69(or 71 now I believe):

-----
You can continue to contribute to an RRSP until the end of the year in which you turn 69, provided you still have earned income. At that time, you must convert your RRSP into a Registered Retirement Income Fund (the most popular option), buy an annuity, or withdraw it in cash (generally not a good idea as you'll pay tax on the whole amount and won't have a retirement income).
-----


Is it(income tax) applicable only if I withdraw the whole amount and not applicable on "Registered Retirement Income Fund " or I would have to pay the tax anyways if I withdraw money in whatever way after reaching the retirement age?



Contributors: investpro(5) pratickm(3) MeagainMe(3) DP_gta(2) Kadambari(1) dp_jain(1) nari(1) Iceberg(1) chinai91(1) hem_13(1) santy4(1) Smiley(1)



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