Quote:
Originally Posted by Hondaracer
My understanding is that anyone eligible for CPP who is also pulling large sums from their RRSP’s for their retirement, that CPP basically becomes moot as you’ll be paying x amount back in taxes regardless
So CPP will count as Income on top of the “income” of your RRSP withdrawals. A quick search looks like you can request to have taxes automatically withheld from
CPP payments. But essentially (and maybe im just talking out my ass right now) but basically somthing you paid into your entire working life now could be somthing you opt out of completely or just becomes another line on your income
Tax.
I guess CPP is fucking peanuts though and it wouldn’t be anything that would be pushing you into the next tax bracket
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Hmm. I think I understand what you're saying, but I still don't think you can write off any CPP or OAS payments, as to reduce your tax burden at least.
Even if your marginal tax rate at retirement is stupid high, let's just say 50% marginal tax rate, your CPP will be taxed at that rate. So if your CPP is $100, that will be taxed at your highest marginal rate, and you'll still have $50 in your pocket.