Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/3/83; site utcsrgv.UUCP Path: utzoo!utcsrgv!dave From: dave@utcsrgv.UUCP (Dave Sherman) Newsgroups: can.general,net.taxes Subject: Re: Cdn RRSP for income averaging Message-ID: <3430@utcsrgv.UUCP> Date: Sun, 4-Mar-84 01:14:07 EST Article-I.D.: utcsrgv.3430 Posted: Sun Mar 4 01:14:07 1984 Date-Received: Sun, 4-Mar-84 04:43:18 EST References: <3588@utzoo.UUCP> Organization: The Law Society of Upper Canada, Toronto Lines: 19 Henry Spencer says: "The roundabout route through the RRSP is probably accidental and will probably be blocked sooner or later." It's only sort of accidental, and I doubt it will be blocked as long as RRSP's stay in the system. Although the RRSP is deisgned for *retirement*, some exceptions have to be allowed for disabilities and the like. In the case of RRSP's, the entire plan is taxable in the year in which you collapse it. Therefore, the implicit "disability" exception is that you can (profitably) collapse your RRSP in a year in which you have lower income and are thus paying tax at a lower marginal rate. Presumably, if you are making less this year than in a previous year, you do have more need of the money. (I'm speaking in general terms, of course; there are lots of situations where this doesn't actually apply.) Dave Sherman Toronto -- {allegra,cornell,decvax,ihnp4,linus,utzoo}!utcsrgv!dave