Rrsp?

[Darkique]

Hey,

I was just wondering whether it would be smart for me to invest in RRSP now if there is a possibility that in the future i might be working outside of Canada or perhaps even migrate to another country.

Thanks

[Germack]

Hey,

I was just wondering whether it would be smart for me to invest in RRSP now if there is a possibility that in the future i might be working outside of Canada or perhaps even migrate to another country.

Thanks

If your marginal tax rate is above 25% it would be smart. In the case you would migrate to another country you could then withdraw your RRSP at a tax rate of 25%

[Bick Financial Toronto]

Hey,

I was just wondering whether it would be smart for me to invest in RRSP now if there is a possibility that in the future i might be working outside of Canada or perhaps even migrate to another country.

Thanks

Even if you work outside of Canada temporarily, you may decide to maintain your Canadian residency and in that case your RRSP can remain in Canada. The implication of Canadian residency is that you have to pay taxes in Canada.

If declare that you are not a Canadian resident because you moved to another country temporarily or permanently then all your RRSP will be deemed to be taken out and thus gets added to your regular income in the tax year when you declared that you have become a non-resident and thus it gets taxed at your marginal tax rate at the time.

[Darkique]

Thank you so much.

[Germack]

If declare that you are not a Canadian resident because you moved to another country temporarily or permanently then all your RRSP will be deemed to be taken out and thus gets added to your regular income in the tax year when you declared that you have become a non-resident and thus it gets taxed at your marginal tax rate at the time.

This information is not correct! You do not have to withdraw all your money from your RRSP when you have become a non-resident. You can keep your RRSP. Once you have become a non-resident and withdraw money from your RRSP you are getting taxed a flat rate of 25%.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/wthdrwls/rts-eng.html

[wheel]

nm