Can someone just clarify something for me please about post-tax dollars going into an RSP?
To me it appears that I'm paying tax on the funds twice, one when I get my paycheck, and again when I go to withdraw the funds. However, I also realize that if I invested that same money outside of an RSP I'm taxed on my check, and I'll be taxed on the gains of those dollars (assuming they are outside a TFSA).
So what is the benefit to me of putting my after-tax dollars into my RSP account only to be taxed on the whole amount if/when I withdraw it, versus only paying tax on the gains of the funds outside of a RSP? Or am I missing something?
To me it appears that I'm paying tax on the funds twice, one when I get my paycheck, and again when I go to withdraw the funds. However, I also realize that if I invested that same money outside of an RSP I'm taxed on my check, and I'll be taxed on the gains of those dollars (assuming they are outside a TFSA).
So what is the benefit to me of putting my after-tax dollars into my RSP account only to be taxed on the whole amount if/when I withdraw it, versus only paying tax on the gains of the funds outside of a RSP? Or am I missing something?