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Replying to all below posters: Yes, I know that there exists a tax deferral. Sometimes employers even match funds. The statement I am making is that this seem
by stegosaurus 11y ago
Replying to all below posters:
Yes, I know that there exists a tax deferral. Sometimes employers even match funds.
The statement I am making is that this seems like a complete scam by the Government - forcing you to perform suboptimal manoeuvres by withholding your cash otherwise.
Is it worth participating to reduce taxes? Possibly.
Does it outrage me that I'm treated like a child in this respect? Certainly.
(Why age 55? What if I want to retire at 50? What if I'd rather take a year out now and work 55-56? What if I want to leave the country? What if tax rates change?)
- kspaans 11y agoThat's a good question actually. In Canada you can withdraw from your RRSP early if you want, but you get hit with something like a 25% "don't do that" fee. What's the reason for this lock-in? I can't see one other than to try to encourage you to keep your money in the plan for the long run.