Take it in cash and put 50k in a flow threw LP
Sorry for my ignorance, but how did you end up with less than half of the amount after deductions, and that still hasnt include taxes?The payout amount is just over $100K (less than $50K net after all the deductions).
Ask your company how much, if any, of your severance settlement qualifies as a "retiring allowance" under CRA rules. Part of it might be eligible for extra RRSP contribution room. There is a formula in CRA Guide to Registered Retirement Plans T-4040 - Chart 8.My company has paid out my banked vacation in a lump sum as part of my severance settlement. The payout amount is just over $100K (less than $50K net after all the deductions). How could I limit my taxable income for the year?