Path: utzoo!mnetor!micomvax!ray
From: ray@micomvax.UUCP (Ray Dunn)
Newsgroups: can.general
Subject: Re: income tax tips #13: RRSPs
Message-ID: <923@micomvax.UUCP>
Date: 1 Mar 88 18:00:21 GMT
References: <1988Feb18.123536.23901@lsuc.uucp>
Reply-To: ray@micomvax.UUCP (Ray Dunn)
Distribution: can
Organization: Philips Electronics Ltd. (TDS - Montreal) St. Laurent P.Q., Canada
Lines: 38

In article <1988Feb18.123536.23901@lsuc.uucp> dave@lsuc.uucp (David Sherman) writes:
>
>For 1987, as in 1986, you can contribute up to $7,500 or 20% of
>your "earned income", whichever is less.

It's interesting to note that the government reneged here - the amount was
supposed to increase in 87 to, I believe, $9500.  The increases have been
defferred by 1 year.

Also, what has happened to the promised carry forwardability of the unused
portion of the allowed contribution?

>...  The $7,500 limitation
>applies if you are not a member of a company pension plan.  If you
>are, your limit is $3,500 minus any contributions you make to the
>pension plan

How can anyone afford to be in a company pension plan?  It has to be a
bloody good plan before it is worthwhile relinquishing the $4000 extra RRSP
contribution availability.

>... You can also
>contribute to a plan for your spouse, if you wish, and if none
>of the funds contributed this way are withdrawn until the third
>year following the year for which the contribution is made, it'll
>be taxed in your spouse's hands when it's withdrawn. (Useful
>for income-splitting.)

Not quite true!   There is a last-in first-out rule, so that you have to
wait three years from the date of the *last* deposit to a spousal plan
before the funds can be withdrawn as her/his income.

>David Sherman
>Tax Consultant


Ray Dunn.
Not a tax consultant, just a long-suffering tax payer!