I have an old RRSP account (30K) I no longer use. What to do with it?

[xcarlx]

Any way I can get the money to throw on my mortgage?

 

[tythomasjr]

@xcarlx You can transfer the RRSP to another RRSP. No tax implication there.

You can collapse the RRSP, but you will pay dearly for doing that.

However, the point of an RRSP is that you don't use it until you retire. It isn't for using when you are young.

 

[xcarlx]

@tythomasjr I'm not exactly young, lol.
I'd just like to get rid of this mortgage.

 

[sabrinabs]

@xcarlx You can withdraw the money but you will have to count it as income in the year you withdraw it.

 

[xcarlx]

@sabrinabs So half way through this year I should quit my job and take out the money?

 

[xcarlx]

@sabrinabs So half way through this year I should quit my job and take out the money?

 

[sabrinabs]

@xcarlx That's your decision. The bank you have the money with will withhold a portion of it for taxes. It reconciles on your tax return.

 

[mamalana]

@xcarlx If by "I no longer use" you mean it's no longer contributed to, but you have another, transfer this account into the other.

Pulling this amount out is immediately taxed-withheld at 30%, unless you're in quebec then it's 15%, which then gets adjusted to your marginal rate when you file your income tax.

You'd burn more in taxes than you would likely be saving in interest on the mortgage. Without knowing any more details, it's likely not worth it.

 

[opaquepurple]

@xcarlx Put in into a direct investment account and yolo the whole thing on 0DTE Nvidia puts

 

[xcarlx]

@opaquepurple Im kinda in the mood to yolo something

 

[jamesuk]

@xcarlx stonks

 

[cranberrymuffinsalt]

@xcarlx Bitcoin

 

[lookingforward1]

@cranberrymuffinsalt DOGE