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11-30-2012, 02:57 PM
  #20
barneyg
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Quote:
Originally Posted by HockeyCrazed101 View Post
So then Darche's comment is based on a situation where a player doesn't put the remaining money in RRSPs? He said you get back 13k and if you're smart you invest it but if they have RRSP accounts, the transfer could go straight to their accounts and that isn't taxable until you withdraw money out of it. Also, it might be an issue for players who make around league minimum because I think an RRSP contribution can't be more than 18% of your annual income.
The 18% rule only applies if you make less than ~$130,000/year. If you make more than that, the cap is fixed at ~$24,000 (18% of $130k).

The $24,000 pension contribution IS already dumped into the player's RRSP -- Darche can't put anything else in it. So he has to pay taxes on the additional cheque he gets. Then he can put a small part of it into a TFSA ($5k/year) but if he invests the rest, if will be in a non-registered account and he will therefore have to pay taxes on interest/dividends/capital gains every year after that.

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