This is essentially what I did. I just paid $500.00 in taxes in order to withdraw $5,000.00 from my RRSPs. I have begun the process which will take a number of years to complete as I want to pay only the minimum of withholding tax which is 10% for $5,000.00. Now I wait for another year to pass by before I can remove another $5,000.00. Are we having fun yet?
I just did a straight transfer from my RSP savings account to my TFSA account. And magically $500 disappeared in between the two accounts. You don't even get to look at it or hold it or anything...it just vanishes into thin air...well, not really...it disappears into government coffers. Maybe, just maybe, when it comes time to do my taxes next year some of the $500 will find its way back into my pocket. I can hope can't I?
I decided to open a TFSA GIC today in order to get a few more cents in interest. There's not much of that to be had these days but I'll nab what I can. I'm finally in a position that I would be happy to see interest rates go up...lucky me I have no debt and a few more percentage points would really help out my monthly income. I don't think that's going to happen anytime soon however.
Just another day of riveting financial news!!
Oh, Canadian taxes!
ReplyDeleteJane x
I'm sorry to say that I don't really understand. I'm sure it's a lot like tax-sheltered retirement accounts here, though, and I know that sooner or later Uncle Sam gets fed, and good. And I know that I don't like taxes!
ReplyDeleteoh the joys of the Canadian Taxman........
ReplyDeleteThey should have let you cuddle the money for a little bit, at the very least!
ReplyDelete