Canadian government employees are being given a one-time severane payout because the current plan is being cancelled.
Unfortunately, there are only two options:
Take it now as employment income, pay tax, invest it wherever or do whatever else with.
Take it now without paying taxes, but it must be deposited into an RRSP. Then taxes are paid upon withdraws.
Any thoughts on choosing one or the other? Putting it into an RRSP just defers the taxes, it doesn't save any money in the long-term.
Thoughts?
Unfortunately, there are only two options:
Take it now as employment income, pay tax, invest it wherever or do whatever else with.
Take it now without paying taxes, but it must be deposited into an RRSP. Then taxes are paid upon withdraws.
Any thoughts on choosing one or the other? Putting it into an RRSP just defers the taxes, it doesn't save any money in the long-term.
Thoughts?