The clawback of government benefits can have a significant impact on your retirement income. with some careful RRSP planning as age 71 approaches, you can reduce taxable earnings in retirement- and reduce the clawback of government benefits.
The tax deductible of contributions is one of the most valuable features on an RRSP. If you are approaching age 71 and closing out your RRSPs, however, the tax benefits associated with RRSP contributions can gain even greater importance.
Because RRSP tax deductions can be carried forward indefinitely- long after your RRSPs have closed- a final year RRSP contribution can be an important tool for lowering earned income in retirement and reducing the impact of any clawbacks on income-tested government benefits such as Old Age Security (OAS).
An in-depth look at the issue…and the opportunities.
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