If I am eligible to withdraw funds from my personal RSP account using the LLP (Lifelong Learning plan) option (because me or my spouse is a full-time student), can I withdraw from my own RSP account and use the funds to contribute into spousal RSP account to take tax deduction advantage for the current tax year? The money I withdraw from LLP needs to be re-paid in 10 years starting after 4 years from the withdrawal date.
Plus I can also take those money out from spousal RSP at low tax rates in the future when the spouse is not working (on maternity/paternity leave)
Does it make sense ?
Is it a good idea ? Or do you see any problem ?
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/menu-eng.html
Thank you for your time in advance.
Quote:
Originally posted by jigz787
If I am eligible to withdraw funds from my personal RSP account using the LLP (Lifelong Learning plan) option (because me or my spouse is a full-time student), can I withdraw from my own RSP account and use the funds to contribute into spousal RSP account to take tax deduction advantage for the current tax year? The money I withdraw from LLP needs to be re-paid in 10 years starting after 4 years from the withdrawal date.
Plus I can also take those money out from spousal RSP at low tax rates in the future when the spouse is not working (on maternity/paternity leave)
Does it make sense ?
Is it a good idea ? Or do you see any problem ?
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/menu-eng.html
Thank you for your time in advance.
No your answers are not helping, but thanks anyways.
I already did a bit of homework on my side, I already read the globe and mail article about "NOT ONE USES LLP" I am not sure why did you copy-paste "A recent victim of recession...." paragraph. It doesn't apply me.
Also, I am not sure why my RSP institute will answer my question. I am not asking about any rules and regulations.. Why would the institute answer about my personal financial situation ? I just asked for opinions from tax expert CD members.
I don't know if you have heard of Preet B... I receive his RSS feeds and when I hit LLP I get his response in my e-mail & RSS feeds. If it also appears anywhere else, it confirms my findings in my e-mail. I don't have to go searching for authentic answers.
Knowing what has been said in his RSS feeds, you should refrain from it. Yes, you do have a choice. So, it is upto you to do as you please. Your situation might be different to the one posted in the web, if you wish to explain here you still have a lot of room under this posting. We are all eyes and ears.
First item, that I should ask you is have you reached the $20,000 limit.? That will drag out all your finances into this website. To avoid this, I told you to contact the Institution that holds your RRSP Funds. They are not only mangers of your RRSP Funds and take care of it, they are also your Financial advisers. They should provide you with an answer when you write to them and ask.
In your NOA, (Notice of Assessment) received from CRA (Canada Revenue Agency) last year, you will know exactly what your contribution limits are. My next question to you would be, can you tell me what are the limits that you got from your NOA received from your Last years' return. Once again, I will be exposing your finances here on CD. I wish to avoid it if at all I can.
The next question to you would be, What are your anticipated income for the year 2015, yours and your spouses, each of you? That will once again will expose your finances here for this year 2015.
I can help you right from the bottom upto your tax filing on 30th of April of this year, for the last year, 2014. But your withdrawal under LLP and ploughing the sum back into your Spousal RRSP, so withdrawn through LLP, will enter into the NEXT Years' income, that is if you have exceeded the $20,000 limit, for which I will need you to answer a few more questions and drag out a lot more financial situation of yours into the open. Are you ready for it.?
DO YOU think it is fair for me to do it on an open website. I don't think so. BUT..You are free to answer as it is your choice.
I only do my taxes and I am able to manage my affairs all by myself. I don't consider myself a TAX EXPERT, but I sure do have a good grasp of it and I can help who so ever comes here asking a decent question about taxation, and then some.
You are a very difficult person and you have your own difficulties and my answers did not help any, so leave it at that.
FH.
Yes, you are right.
I shall wait for others to answer.
And what 20 K limit are you talking about ? This is first time I am thinking about taking advantage of LLP..... So take a guess
Quote:
Originally posted by jigz787
Yes, you are right.
I shall wait for others to answer.
And what 20 K limit are you talking about ? This is first time I am thinking about taking advantage of LLP..... So take a guess
Quote:
Originally posted by jigz787
Yes, you are right.
I shall wait for others to answer.
And what 20 K limit are you talking about ? This is first time I am thinking about taking advantage of LLP..... So take a guess
Wow... you are sodesperate to increase your number of posts or you are always like this ...?
I guess you did not read my very first post. If I had used LLP in the past then why would I ask the question now ? which should clearly mean I have never used any LLP limits in the past.
I already know the rules of LLP and there was nothing new on TD website neither I learned anything new from your posts.
Well.... its helping me to keep my post on the top so others can comment
Hoping for better answers from others.
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