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Locke · 03-18-2011, 01:57 PM

With 5+ years of service you should have the option to take at least $10,000 of that as an eligible retiring allowance.

That way the whole $14,000 will be taxed at your marginal rate, but only 10-20% will be withheld on the $4,000 that isnt eligible and the other $10K should go straight into your RRSP.

While the $10K will be taxable income at your marginal rate, it will be accompanied by an offsetting $10K RRSP receipt and having the required room isnt necessary as it will be deemed as an eligible retiring allowance.

03-18-2011, 01:57 PM	#7
Locke Franchise Player Join Date: Mar 2007 Location: Income Tax Central Exp:	With 5+ years of service you should have the option to take at least $10,000 of that as an eligible retiring allowance. That way the whole $14,000 will be taxed at your marginal rate, but only 10-20% will be withheld on the $4,000 that isnt eligible and the other $10K should go straight into your RRSP. While the $10K will be taxable income at your marginal rate, it will be accompanied by an offsetting $10K RRSP receipt and having the required room isnt necessary as it will be deemed as an eligible retiring allowance. __________________ The Beatings Shall Continue Until Morale Improves! This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness. The World Ends when you're dead. Until then, you've got more punishment in store. - Flames Fans If you thought this season would have a happy ending, you haven't been paying attention.