Saving RRSP room?

13 CAM RRSP Month Blog Saving RRSP RoomSaving RRSP (Registered Retirement Savings Plan) room is a great strategy if you are expecting a large tax year in your future.

For example if you make $70,000 a years, but sell an asset that adds $100,000 to your taxable income in one year.  If you had enough RRSP room to put the 100,000 into your RRSP you would save a lot more tax than if you had made the same deductions over the lower income year.

Another good time to save your RRSP room is on a year you have a really low income, this could be a sabbatical year, job transition, maturity or disability year.

A simple concept, but with future value and different tax calculations to figure out what is best it is usually a good idea to discuss this with an accountant.

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