Reasons to consider early RRSP and RRIF withdrawals
Workers contribute to their registered retirement savings plans (RRSPs) during their working years, with the hope of paying a lower tax rate on withdrawals than the tax rate they save when contributing. Even if the tax rates are similar, there can be a benefit to the tax deferral and compounding of investment income over the years. Contributors who pay more tax on withdrawals than they save on their contributions may not come out ahead, so low-income workers may be better off by not contributing to a RRSP.
Original Article Source Credits: Money Sense , https://www.moneysense.ca/
Article Written By: JASON HEATH
Original Article Posted on: OCTOBER 19, 2021
Link to Original Article: https://www.moneysense.ca/save/investing/rrsp/reasons-to-consider-early-rrsp-and-rrif-withdrawals/