November 18, 2017
Loonie: That's about what I plan to do. There are some undefined variables, though. GIS calculations are a bit obscure, and the BC rent subsidy for old folks (SAFER) hasn't had its thresholds updated since about 2018, and they may move. As one disgraced former US president is fond of saying, "We'll see."
October 21, 2013
April 6, 2013
Loonie: I certainly wouldn't want to contribute any more to my RRSP! I'd get no tax benefit and the deposits would be taxable on withdrawal.
That can't be the case. If there would be no tax benefit in claiming the deduction for the RRSP contribution now, then one could wait and claim the deduction gradually later, to shield the RRIF withdrawals from taxation.
That is the "Using up your existing RRSP room" strategy described in The Navigator (Feb 2017): RRSP strategies at age 71:
Using up your existing RRSP room
If you have accumulated unused RRSP room and have not contributed to your RRSP, consider if it makes sense to use up your RRSP room by making a contribution in the year you turn 71. Remember, you do not have an additional 60 days after the end of the year to make a contribution, as you can no longer have an RRSP after December 31.
Generally, if you are going to be in a higher bracket in the year you turn 71 compared to a future year, you can realize a tax savings and deferral of tax by contributing and deducting that contribution.
Alternatively, you can make the contribution up to your limit and spread out the deduction over future years. You may decide to claim the deduction in a year(s) when your income is higher as a result of receiving RRIF, pension or annuity payments. This strategy can help lower your income and keep you under the OAS clawback threshold.
November 18, 2017