The tax code is full of arcane rules that many of us find hard to interpret. If you're looking on tax tips for your RRSP or RRIF, send in a question and we'll ask tax expert Tim Cestnick to answer it.
Among Mr. Cestnick's many tips are:
- Contribute to an RRSP for tax deferral and tax-free growth
- Recognize that it's possible to have too much in your RRSP
- Open a self-directed RRSP once your plan assets reach $20,000
- Pay your RRSP fees from outside your plan up to age 71
- Know your RRSP contribution limit each year, then avoid an accumulation of contribution room
- Make a contribution in kind to your RRSP if you're low on cash.
- Consider borrowing to make RRSP contributions if you haven't got the cash.
- Have your employer contribute directly to your RRSP
- Avoid over-contributing to your RRSP and invest any excess outside the plan.
- Over-contribute to your RRSP just before winding up the plan at age 71, if you have earned income
- Boost the value of your RRSP with tax-free rollovers
- Ensure that your child files a tax return to maximize RRSP contribution room
- Roll your RRSP into a RRIF or annuity to defer tax well beyond age 71
- Defer tax on your RRIF withdrawals as long as possible
- Split eligible pension income for tax savings as a family
Click on the live blog box below to replay the discussion.
Tim Cestnick is managing director at WaterStreet Family Wealth Counsel and author of 101 Tax Secrets for Canadians. Read an excerpt here: