By: Brenda Bouw | Globe and Mail
Read More, and see what Scott Plaskett says about Tapping into your RRSP for home or education? Here’s what to consider
Scott Plaskett, senior financial planner and chief executive officer at Ironshield Financial Planning in Toronto, says another option is to skip a payment in a year when someone isn’t working. For example, if they’re on parental leave and their income is much lower.
“The sole purpose of puffing money into an RRSP is to take it back out at some point in the future [when you’re in] a lower tax bracket than when you put it in,” Mr. Plaskett says. “There are ways you can play with it to make it work when you are aware of the options [that] exist.”
