# RRSP deduction optimization (retiree)
**URL:** https://www.protaxcommunity.com/t/rrsp-deduction-optimization-retiree/2429
**Category:** Tax Topics
**Created:** [April 16, 2019, 7:43pm UTC](https://www.protaxcommunity.com/t/rrsp-deduction-optimization-retiree/2429 "2019-04-16T19:43:15Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@NiceGuy](https://www.protaxcommunity.com/u/NiceGuy)
#### Post date: [April 16, 2019, 7:43pm UTC](https://www.protaxcommunity.com/t/rrsp-deduction-optimization-retiree/2429/1 "2019-04-16T19:43:15Z")
\*Technical question
**2018:**
RRSP contribition **$40,000.00** & Total income **$90,000.00** (Mostly T4 & nominal investment income)
**2019:**
Total income **$150,000.00** (Pension cash lump sum, bonus, CPP, OAS)
**$40,000.00** RRSP deduction should be utilized in **2019** because income will be much higher.
Considerations were impacts on Age amount, Ontario surtax, Ontario health premium, & Marginal tax bracket.
However, even without considering these it seems the obvious choice to use the deduction is in **2019** if the number one priority is lowering overall tax paid between the two years.
Even with the full deduction being applied in **2019** income is **$110,000** , which is still higher than the **$90,000**.
Possible rate of return on investments earned from 2018 to 2019 omitted in this scenario.
Any thoughts/considerations?
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### Author:  [@jimt](https://www.protaxcommunity.com/u/jimt)
#### Post date: [April 17, 2019, 2:17am UTC](https://www.protaxcommunity.com/t/rrsp-deduction-optimization-retiree/2429/2 "2019-04-17T02:17:50Z")
Save it for next year