When is your RRSP too large? (as seen in National Post)

I’m excited to be quoted in both the National Post and in Jonathan Chevreau’s “Findepence Hub” blog!

“When is your RRSP too large?” Here are the links:

National Post

Findependence HUB

My view is that a RRSPs over $750K-$1 million may not be the most beneficial. If your tax rate on withdrawal is higher than when you contributed, then you would have been better off contributing to TFSA or even non-registered (assuming you invest tax-efficiently).

Your forced RRIF withdrawal rates in retirement are 5% at 70 and 7% at 80. Once your total taxable income gets over $75,000, your marginal tax rate (including the OAS clawback) is 44%, which may be higher than when you contributed.



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