# RRSP's or not?



## DoeiDoei (Oct 21, 2013)

Good morning everyone, my first post on this forum. I hope to be able to find an answer to my question.

I am a Canadian Resident living in Canada since 2005, my annual income currently is around 180K. I pay myself a management fee from my own company abroad. My wife doesn't work so the income is split between the both of us. We have been contributing RRSP's for years and for this year we are allowed to deposit around 35K. As we are thinking about moving back to our country of origin I went ahead and found out that 'non residents' would pay 25% tax if they decide to take out their RRSP amount.

My question: Would it be smart to go ahead and deposit the 35K this year knowing there is a fair chance we will be moving back next year? I would have to pay myself the extra amount in order to have the funds available to deposit. Perhaps it's better to leave the money in my company?

I appreciate everyones help a lot!


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## lonewolf (Jun 12, 2012)

My question: Would it be smart to go ahead and deposit the 35K this year knowing there is a fair chance we will be moving back next year? I would have to pay myself the extra amount in order to have the funds available to deposit. Perhaps it's better to leave the money in my company?

I appreciate everyones help a lot! [/QUOTE]

Do you mean moving back to country of origin then moving back to Canada next year ?

I would let it grow tax free as long as posible then take it out @ 25%. Keep some financial ties with Canada then break them off as soon as you hit the age of mandatory RRSP withdraw. 

Of course if the laws change you could pay higher then 25%


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## lonewolf (Jun 12, 2012)

I would put 35000 into RRSP this year


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## Charlie (May 20, 2011)

can't see reason not to do the $35K

you should check with your accountant the issues around the deemed disp of your company when you leave.


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## Guban (Jul 5, 2011)

DoeiDoei said:


> I am a Canadian Resident living in Canada since 2005, my annual income currently is around 180K. I pay myself a management fee from my own company abroad. My wife doesn't work so the income is split between the both of us.


CRA may find it odd that your wife "doesn't work", and gets paid a salary for this. 

You may wish to find out how your country of origin treats income from a Canadian RRSP. If their tax rates are lower than ours and you can get a foreign tax credit, then go ahead and take the deduction for the 35k from Canada this year, and eventually take it out in your country of origin. If you face higher taxes in the future from your country of origin and/or they won't give you a foreign tax credit, then having a large balance in your RRSPs is a problem.


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## sprocket1200 (Aug 21, 2009)

If this is t4 income there are serious issues here. Go see an accountant....


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