cheshire cat
green box
jerri lynn morrison

Tax Planning Point

It is worth keeping in mind that if you have your RRSP's invested expecting capital gains growth on the investment, by doing that investing inside an RRSP, you will pay regular tax rates on that growth when the RRSP's are cashed. For example, if you are in the top tax bracket in Alberta, that growth will be taxed at 39%. If you had made those investments outside an RRSP, that growth would be taxed at 50% of your normal tax rate, so in the above example at 19.5%.


RRSP limits have been increased from the $13,500 they have been at since 1996 as follows:

$14,500 for 2003

$15,500 for 2004

$16,500 for 2005

$18,000 for 2006