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Fund Extended Time Off or a Business Start-up
Your RSP can be used for more than retirement.
It’s a perfect way to save for periods when you expect to give up employment income in return for time off. For example: a maternity leave, a sabbatical year, unpaid leaves of absence or extended vacations. You will likely be in a fairly low tax bracket if you’re on unpaid or low-paid leave. So, your RSP withdrawals would attract little or no tax. Some entrepreneurs live off their RSPs while getting a new business off the ground.
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