Comments on: Your Turn: Boost Your CCTB by Contributing to Your RRSP http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dennis Karis http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-398556 Dennis Karis Thu, 27 Jan 2011 20:44:19 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-398556 RRSP withdrawals can reduce the Old Age Credit available to persons over 65 years of age. This is a good reason for using a TFSA for someone with an income under $40,000. The person in a higher tax bracket with a flucutating yearly income could save $5,000 in a TFSA and then transfer it to a RRSP at the appropriate time. RRSP withdrawals can reduce the Old Age Credit available to persons over 65 years of age. This is a good reason for using a TFSA for someone with an income under $40,000. The person in a higher tax bracket with a flucutating yearly income could save $5,000 in a TFSA and then transfer it to a RRSP at the appropriate time.

]]> By: The Advantages of RRSPs over TFSAs | MoneySense http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-398539 The Advantages of RRSPs over TFSAs | MoneySense Thu, 27 Jan 2011 20:23:36 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-398539 [...] It is true that withdrawals from a RRSP or RRIF may result in a reduction of income-tested benefits. But the flip side is often neglected. Contributions to a RRSP reduce one’s taxable income and increases income-tested benefits such as t.... [...] [...] It is true that withdrawals from a RRSP or RRIF may result in a reduction of income-tested benefits. But the flip side is often neglected. Contributions to a RRSP reduce one’s taxable income and increases income-tested benefits such as t…. [...]

]]> By: Get the most out of Ontario Sales Tax Transition Benefit | Canadian Capitalist http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-211569 Get the most out of Ontario Sales Tax Transition Benefit | Canadian Capitalist Tue, 23 Feb 2010 14:27:52 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-211569 [...] below the threshold by making a RRSP contribution. Also, recall that families with children can boost their CCTB payments by making a RRSP contribution in any year. The RRSP deadline is March 1, 2010. This post was originally published on April 15, [...] [...] below the threshold by making a RRSP contribution. Also, recall that families with children can boost their CCTB payments by making a RRSP contribution in any year. The RRSP deadline is March 1, 2010. This post was originally published on April 15, [...]

]]> By: Dave from GP http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-102781 Dave from GP Wed, 16 Jan 2008 17:25:49 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-102781 Oh yes! It works the opposite as well. Last year I decided to cash some RRSP money to pay down some debt. Therefore my income technically increased. The debt was gone but so was CCTB benefits for 2007! I don't regret it but it is something to think about if you are considering. I should be back on track this year. Oh yes! It works the opposite as well. Last year I decided to cash some RRSP money to pay down some debt. Therefore my income technically increased. The debt was gone but so was CCTB benefits for 2007! I don’t regret it but it is something to think about if you are considering. I should be back on track this year.

]]> By: Rob http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-102713 Rob Wed, 16 Jan 2008 15:19:28 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-102713 CC- typically CRA will go back three years with only a letter explainign the error. Changes to your tax returns beyond a normal three year period require approval from the CRA "fairness committee". Believe it or not, the CRA fairness committee is actually pretty fair about things, but it does involve an extra step and therefore about 3 more months to get resolution. Although it is wordy, anyone condering a request beyond the three year period would be wise to spend the time reading the CRA guidelines on the matter which can be found at ... http://www.cra-arc.gc.ca/E/pub/tp/ic07-1/ic07-1-e.html#P251_34381 CRA can approve adjustments back as many as 10 years. I have been successful in getting this done for clients on more than a few occasions so it is definitely worth a try. Good luck! CC- typically CRA will go back three years with only a letter explainign the error.

Changes to your tax returns beyond a normal three year period require approval from the CRA “fairness committee”. Believe it or not, the CRA fairness committee is actually pretty fair about things, but it does involve an extra step and therefore about 3 more months to get resolution.

Although it is wordy, anyone condering a request beyond the three year period would be wise to spend the time reading the CRA guidelines on the matter which can be found at …

http://www.cra-arc.gc.ca/E/pub/tp/ic07-1/ic07-1-e.html#P251_34381

CRA can approve adjustments back as many as 10 years. I have been successful in getting this done for clients on more than a few occasions so it is definitely worth a try.

Good luck!

]]> By: Traciatim http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-102641 Traciatim Wed, 16 Jan 2008 11:43:51 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-102641 Jennie, It's pretty far up there. I'm not sure of the exact maximum, but if you use the calculator and put one person with a 100K salary with 2 kids and no disability (in NB) then your 'benefit' would be around 4 bucks. Drop that to 70K and you'll receive over 100 bucks a month. I just want to thank CC, and D, for posting this awesome tip. I'm very seriously considering taking an RRSP loan this year since my spouse was in school last year I get to take the child care, she had almost no income. So for 2007 if I take out a descent sized loan after all my deductions I'll be under the limit for the National Child Benefit Supplement monthly amount which is where the returns really spike. From my calculation the return would be nearly 10% plus the deduction from the RRSP deposit itself and any gains inside the RRSP. With the math working the way it does for my family,this will probably be the only year we will be able to get these kinds of returns since for the 2008 year she will be back working full time again. Jennie, It’s pretty far up there. I’m not sure of the exact maximum, but if you use the calculator and put one person with a 100K salary with 2 kids and no disability (in NB) then your ‘benefit’ would be around 4 bucks.

Drop that to 70K and you’ll receive over 100 bucks a month.

I just want to thank CC, and D, for posting this awesome tip. I’m very seriously considering taking an RRSP loan this year since my spouse was in school last year I get to take the child care, she had almost no income. So for 2007 if I take out a descent sized loan after all my deductions I’ll be under the limit for the National Child Benefit Supplement monthly amount which is where the returns really spike. From my calculation the return would be nearly 10% plus the deduction from the RRSP deposit itself and any gains inside the RRSP.

With the math working the way it does for my family,this will probably be the only year we will be able to get these kinds of returns since for the 2008 year she will be back working full time again.

]]> By: David Summers http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-102562 David Summers Wed, 16 Jan 2008 05:30:00 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-102562 I would like to learn more about RRSPs' and retirement. Thanks, Dave I would like to learn more about RRSPs’ and retirement.

Thanks,
Dave

]]> By: Jennie http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-102558 Jennie Wed, 16 Jan 2008 05:15:44 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-102558 Thank you so much for the message. I really appreciate your tip! What is maximum family income to get CTB? Thank you so much for the message. I really appreciate your tip!

What is maximum family income to get CTB?

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-102468 Canadian Capitalist Tue, 15 Jan 2008 23:43:32 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-102468 Hi Rob: Thanks for your comments. Would CRA pay the CTB retroactively only for the past 3 years? If I missed the child tax benefits since the child was born, how would it work? Hi Rob: Thanks for your comments. Would CRA pay the CTB retroactively only for the past 3 years? If I missed the child tax benefits since the child was born, how would it work?

]]> By: Stefan http://www.canadiancapitalist.com/your-turn-boost-your-cctb-by-contributing-to-your-rrsp/#comment-102467 Stefan Tue, 15 Jan 2008 23:38:52 +0000 http://www.canadiancapitalist.com/2008/01/14/your-turn-boost-your-cctb-by-contributing-to-your-rrsp#comment-102467 Thanks, canadiancapitalist. It's a very good strategy, which I'm already practicing for 3 years. Unfortunately, since I'm with a new employer, I "get" a very big Pension Adjustment (PA) each year, which decreases my max. RRSP contr./deduction limit. But I'll always maximize it each year. Thanks, canadiancapitalist. It’s a very good strategy, which I’m already practicing for 3 years. Unfortunately, since I’m with a new employer, I “get” a very big Pension Adjustment (PA) each year, which decreases my max. RRSP contr./deduction limit. But I’ll always maximize it each year.

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