FAQ: Does the Platform Work to Optimize Canada Child Benefit with RRSP Contributions?
How to Optimize Canada Child Benefit with RRSP Contributions
Create a Retirement Plan:
Open a new plan or edit an existing one where you are tracking your income, RRSP contributions, and family-related benefits.
Enter Income and RRSP Contributions:
In the Income section, input your total income (gross income). This is key because the platform uses this to calculate income-tested benefits, including the Canada Child Benefit (CCB).
Analyze the Tax and Benefits Impact:
Go to the Tax and Benefits Analysis page. Here, you'll find a breakdown of the various government benefits, including the Canada Child Benefit (CCB), GST/HST credit, and any provincial benefits.
The table will show when clawbacks for benefits start and stop, based on your income levels, and how contributions to your RRSP affect those benefits.
Adjust Scenarios to See the Effects:
If you want to test different scenarios, try adding different amounts for RRSP contributions in the Projections Section to see how it affects the Canada Child Benefit and other benefits.
The platform will show you how changes to your RRSP contributions impact your CCB amount.
Check Timing of Benefit Changes:
Note that RRSP contributions for the 2024 tax year won’t start affecting income-tested government benefits like the CCB until mid-2025 (typically starting in July).
