QUESTION:
David, Is there a way to cash in my RRSP to avoid some of the taxes?
Thanks,
Max
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david ingram replies:
1. you can take it out in a low income year
2. you can buy flow through shares or movie deals which are risky
3. you can roll the money into an RRIF and take ouot $2,000 a year tax free after age 65
4. you can leave Canada and take it out a a maximum rate of 25%
5. you can use an RRSP drain technique where you borrow to buy an equivalent amount of funds outside of an RRSP and use the interest as a deduction. You withdraw enough out of the RRSP to pay the interest on the loan and thereby 'drain' the money out of the RRSP. After a while, the money outside of the RRSP equals what was in the RRSP. �
