How to deal with RRSP's (Canada)

[Matthew Pounsett]

On 3 January 2018 at 22:11, Cam Ellison <cam at ellisonet.ca> wrote:

>
>> The examples I used were (perhaps over-) simplifications. In practice, I
> actually have a number of stocks and money market accounts within two RIFs,
> like so:
>
> Assets:investments:RIF:Stock1
> Assets:Investments:RIF:Stock2
> Assets:Investments:RIF:MoneyMarket1
> Assets:Investments:RIF:Cash
> etc.
>

Mine are similar, without the cash account.  Looks like we're modelling
this part the same way.


>
>
> The offset account can't be a liability - that would double the impact of
> the withdrawal and screw up your balance sheet. It pretty much needs to be
> either an Equity or an Expense account. As I think about it more, there is
> a certain logic to the latter, since it was originally Income.



I see what you mean about Liability.. you're right, that wouldn't work.
Last night as I was thinking about this more, it occurred to me that a
non-taxable Income account would probably work best to balance out taxable
income.



> I think if your employer contributes to your RRSP or a fund or other
> instrument within it, that probably needs to be dealt with as Income. Also,
> it may count as a taxable benefit.


My recollection from the last time an employer did RRSP matching for me was
that it was tax deferred, just like any other RSP contribution.   But, I
was talking about self-contributing direct from payroll, which can happen
pre-tax (pre-withholding).