Posted by Member # 1
May 8th 2009 @ 07:31 PM
As I have not yet maxed out my RRSP contribution over the years, my RRSP contribution limit for 2009 is $65,000+.
I am considering borrowing money to use my entire RRSP contribution limit at the end of the year, however I am not sure at what point it becomes detrimental to borrow money for an RRSP contribution. I am in a high tax bracket; my marginal tax rate is almost 40%.
My question is this: How much should I borrow for the purpose of contributing to my RRSP? Is there a formula for an ideal amount of money to borrow for this?
I have heard mixed stories - both that it would be highly beneficial for me to borrow enough to max out my RRSP contribution limit, as well as that it would not be worth it to borrow so much.
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