Quote:
Originally Posted by corpfan1 
So if I do the full amount...can it OVEREXCEED helping me reduce my taxable income? Is that possible?
Just curious...
Rough example...
I can contribute $18,000
My gross income before deductions is $40,000
How does the math work roughly for this? Just so I get an idea of how the RRSP affects stuff.
Thanks!
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From previous years 35,000 usually ends up with roughly 5500 in fed tax ( at most) The way I have looked at with myself is for every $1200 in RRSP`s you are likely to knock off $250 of your amount owing. Mind you that $5500 or so always had close to $1300 return without adding the RRSP stuff
Just an estimate because yours depends on your tax bracket. I am sure you would move up one level than the example I have given because you would than be the PartB on your federal tax worksheet meaning higher rates now.
Also dont forget I believe you still have to contribute to CPP