It’s possible to have ‘too much’ in your RRSP: Tax expert

As the deadline for registered retirement financial savings plan (RRSP) contributions approaches, one tax knowledgeable says it’s potential for Canadians to have an excessive amount of of their financial savings in a RRSP.

John Yanchus, director of tax and property planning at Canada Life Assurance Company, mentioned residents have to keep in mind that after they withdraw funds, the funds are “fully taxable.”

“So if you have a large pool of money, it can end up into a larger tax consequence at the end of time,” Yanchus mentioned in an interview on Wednesday.

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As a outcome, Yanchus mentioned he recommends that individuals diversify their financial savings and ensure they take their marginal tax price into consideration.

The RRSP contribution deadline is Mar. 1, 2023.

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