How I learned to Love TFSA's - and Hate RRSP's
For the 3rd year in a row, I have taken money out of my RRSP. I honestly wish I never made any contributions. My 1st year I took out the basic exemption about of about 10,000, but for the 2nd and 3rd year, I've upped it to the limit of the 20% withholding, which is $15,000.00. My intention is to completely break down my RRSP, so that by the time a RIF is required, hopefully, there will be nothing left in the account! They way the government taxation works, you are penalized for saving. Don't even get me started on why Dividends are taxed as income-without the benefit of the Dividend Tax Credit. Dividends have already been taxed at the corporate level, that's why they are called dividends. But in RRSP's they are treated as income. Bottom line is, RRSP's suck!
