Quote:
Originally Posted by Tapioca
If I had an emergency, I would still be taxed if I took the RRSP out (unless I lost my job and wouldn't be expected to work for over a year.) RRSP are tax deferrals, not tax avoidance instruments.
I prefer to have a liquid emergency fund. Sure, I have home equity, but I'm not comfortable tapping into that.
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Don't get me wrong, I'm not expert in RRSP, just started learning it myself.
But isn't the tax you pay from taking out an RRSP the same as if you are paying it now?
So for example, if you owe $4000 on your income tax. If you buy say $12000 to defer it. Later in that same year, if you take it out, you get taxed $4000 right?]
No sarcasm or anything, just purely trying to learn RRSP myself.
PS - My TFSA question has been answered in the mail today. Received a T5 for all the interest I've earned in my high interest savings account.
