The Coles Notes of the RRSP

You mean I can do something more with an RRSP than just lay out the cash and buy it?

Okay - this is all new(s) to me.

But this article from CBC.ca News has compressed the RRSP landscape into a few paragraphs. Very helpful indeed. Here are some interesting tidbits...

- toss your Canada Savings Bonds into an RRSP for a tax deduction on its face value (called a 'contribution-in-kind') see Jeff Buckstein's* RRSP online article in the Globe and Mail
(Note from the article: "When transferring investments that normally accrue capital gains into your RRSP, you also need to be aware that future gains are treated as income and therefore fully subject to tax when the funds are eventually withdrawn from your plan. Thus, some experts advise that, if given a choice between transferring in interest-generating items, such as bonds, versus assets such as equities, which generate capital gains outside the RRSP, you should transfer the income-producing assets. Otherwise you will “lose the benefit of that tax-preferential treatment...” ") - kind of sounds like the capital gains wipes out the tax deduction?

- tax-shelter a number of different investment vehicles in an RRSP

- withdraw $ under the Life Long Learning and Home Buyers Plan and make it up in future years rather than cashing out an RRSP

- RRSP 'catch-up' loans are available to close the gap of allowable, unused contribution (although realize that interest payments are not tax deductible - so perhaps only loan what the tax return can pay back for you immediately)

- RRSP contributions can now be made up until 71 instead of 69

Unfortunately, many fellow country-men have not taken advantage of this government offered 'free-bie', like me, up until recently. But we are now... better later than never!

* Buckstein's advice seems to conflict the CBC news article on one point; that gold, silver and other precious metals can be Registered as a tax deduction. *Investivation underway*

APPEND: Just found this question/answer from TDCanadaTrust.com and it has this neat little chart that shows the benefit of contributing to an RRSP all year round rather than waiting until the last minute (like we usually do). Nifty... makes a good case.