# Wonder if it make sense to contribute to an RRSP to shelter earnings?



## Tom S (Apr 11, 2016)

I have no income as I pay myself dividends only. I have maxed out my TSFA have no debts and wonder if it make sense to contribute to an RRSP to shelter earnings?


In this scenario I contribute to my RRSP. I do not get a refund on my taxes but I do get a deduction that I don’t claim. 



When I start to withdraw from my RRSP I offset the amount I put in by the deduction I did not claim by the same amount. So if I put 50,000 into the RRSP then the 50,000 I take out would not be taxable. 

I have plenty of RRSP room and am near retirement age so I will not regret using up the limit. 


The advantage is that I do not pay tax on the earnings until I withdraw it from my RRSP somewhere in the future. 



I am trying to figure out what I can do with extra money now that my TFSA is maxed out. It should be 50 K this year and 20 K plus going forward. The other option is to invest it normally and pay tax on it outside of the RRSP. 



Martin seem to think this might be a good option. What do you think?


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