[Agape]

Currently I am saving for my first house. My question is regarding RRSP's and the Homebuyers Plan.

Currently I have 10,000 worth of space in my RRSP, however I am still in school and am looking at a least a year until I have employment where I can actually use the tax benefits from this investment. School tax credits are more than enough right now.

My question is this.

If I invest 10,000 into an rrsp this year, take it out say in 8 months, can I use the RRSP tax benefits in say two years (for 2010's tax year)?

On a side note my TFSA is fully funded.

 

[AdamW]

If I invest 10,000 into an rrsp this year, take it out say in 8 months, can I use the RRSP tax benefits in say two years (for 2010's tax year)?

Yes, the money for the HBP (up to $25,000) needs to be in the RRSP for a minimum of 90 days before it can be withdrawn.

My suggestion is, if you have the cash and don't need it, dump it into the RRSP and put it in a money market or cashable GIC. That way you'll get the contribution receipt that you can use whenever you want.

That way if cash is a bit tight after you buy the house you still can get the refund in 2010 and beyond once your student tax credits run out!

 

[PMREdmonton]

This is what I did since my income would be going up the year after I bought my home. I made the contribution and withdrew it using the home buyer's plan. I then claimed it the next tax year when my income was higher.

 

[Agape]

Thanks for the replies.

I figured it would be alright, but wanted to check since I would be claiming money that was there at one point, but at the time of claiming would no longer have the money in that RRSP.

Now if only I didn't have to compete with the 30-35 year amortization crowd that likes to inflate housing costs because they can.