tax return 2008 & RRSP

Jump to Page:
< Previous [ 1 ] [ 2 ] [ 3 ] Next >

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

-----
[PratickM]Please do not advertise in Charcha.
Post offers of your professional services in the Classified section.
-----

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

Jump to Page: < Previous [ 1 ] [ 2 ] [ 3 ] Next >

Show Printable version

Send this page to a friend

Add to favorites

Discussions similar to: tax return 2008 & RRSP
	Topic	Forum	Views	Replies
	RRSP - Are we eligible?	Financial Planning	1977	3
	Sticky: RRSP 101 (All RSP questions answered) ( 1 2 3 ... Last ) Tax benefits for Canadian Residents	Financial Planning	128883	121
	Question about Spousal RRSP and HBP	Accounting and Taxation	3652	3
	help! I forgot to contribute RRSP for last year. ( 1 2 )	Accounting and Taxation	2773	10
	Tax Test-R U smarter than the av Can?	Accounting and Taxation	1752	0
	tax return 2008 & RRSP ( 1 2 3 )	Accounting and Taxation	5395	20
	Income Tax-RRSP Vs Charitable Donations ( 1 2 3 4 )	Financial Planning	8346	25
	Spousal RRSP Query	Life	2158	5
	Unused RRSP ( 1 2 )	General	3681	7
	RRSP withdraw without physical presence ( 1 2 )	Financial Planning	4982	10
	Spousal RRSP withdrawal under HBP	Accounting and Taxation	1710	2
	RRSP limit ( 1 2 )	Financial Planning	2213	7
	earning 32K , is it good to open RRSP ( 1 2 )	Financial Planning	3786	12
	RRSP question ( 1 2 3 )	Financial Planning	4410	17
	Question about Tax Return	Accounting and Taxation	1396	2
	Should i contribute to my or my wife's RRSP (long term planning)	Accounting and Taxation	1618	4
	RRSP contribution	Financial Planning	1437	2
	Locked in - Company Match RRSP !	Financial Planning	1645	2
	RRSP and FTHB	Real Estate & Mortgages	2176	3
	Spouse RRSP ( 1 2 )	Financial Planning	5259	13
	RRSP contribution and panelty	Accounting and Taxation	1934	5
	RRSP Question	Financial Planning	1540	1
	Spousal RRSP and HBP	Accounting and Taxation	1832	3
	RRSP vs. TFSA: Which one will give optimum benefits and right for you?	Accounting and Taxation	1425	4
	RRSP withdrawal staying in Canada ( 1 2 )	Financial Planning	6304	7

Charcha

tax return 2008 & RRSP

Discussions similar to: tax return 2008 & RRSP