Severance package settlement confusion: Difficulty – Canadian taxes
September 18, 2013 6:35 AM Subscribe
I need some advice on how to best manage a severance package cheque I’ll be receiving in a week or so. I have room to contribute, approx. $15k or so into my RRSP (this may be understated, going from memory)
I want to stay reasonably liquid, I’m not sure how long it will take me to find a new position and I will be living off of this settlement in the interim
Is there tax benefit to contributing to my RRSP now, and withdrawing in the New Year?
If I just take it all, I’m thinking I’ll get a decent tax return when I file – true/false?
Is there any benefit to asking for 2 cheques, one now, one after January 1st?
Total severance will be around $70k or so, gross
Thanks for your help!
posted by walkinginsunshine to work & money (2 answers total)