Comments on: RSP and Tax Advantages

By: value investor

value investor — Fri, 15 Jan 2010 06:56:22 +0000

Sorry for the slow response somehow this ended up in the spam folder.
“You want to contribute 20k into an rsp, then withdraw it under the HBP. But instead o buying a home you want to re deposit into the RSP?”

Wow no. You are totally right that is a one way ticket to trouble with Canada Revenue Services. Buy the house, but then turn around and contribute right back into your RRSP immediately. Hope that clears up the confusion.

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By: Brendan

Brendan — Wed, 16 Dec 2009 05:23:35 +0000

If you do this CRA is gonna nail you.

Let me get this straight:

You want to contribute 20k into an rsp, then withdraw it under the HBP. But instead o buying a home you want to re deposit into the RSP?

First of all you need 40k in rsp “room” to do this.
Secondly CRA will not allow this. The 20k you take out is to buy a house, not to redeposit the amount back into an RSP.

You may get away with this at tax time but I would expect an audit.

Maybe I understand what you are trying to do.

But hey if it works, then I think you are on to something.