RRSP Meltdown (Investment Loan)

Your RRSP tax is deferred, not forgiven.

Compare the status-quo path against an investment loan + RRSP/corporate-meltdown strategy and see the tax saved and additional net worth at retirement. Numbers update live as you tune inputs.

Melt with a loanThe only calculator that models an RRSP meltdown funded by deductible investment-loan interest.

Want to see this strategy mapped to your real plan?

Free 15-minute phone call with a licensed advisor.

At retirement · age 65

Net asset lift

$152,778

	RRSP	Non-reg	Total
With strategy	$2,359,708	$539,867	$2,899,575
No strategy	$2,746,797	$0	$2,746,797

Net tax saved

$99,231

Tax — no strategy

$1,545,074

−

Tax — with strategy

$1,445,843

Interest deduction$93,600

Tax on the RRSP withdrawals that pay it-$93,600

Less RRSP tax, because the RRSP is smaller (100% taxable)$217,738

Capital-gains tax on the money outside it (50% included)-$118,507

At death · age 85

Net asset lift

$1,272,246

	RRSP	Non-reg	Total
With strategy	$2,269,641	$1,646,441	$3,916,082
No strategy	$2,643,836	$0	$2,643,836

Net tax saved

$227,071

Tax — no strategy

$3,146,412

−

Tax — with strategy

$2,919,341

Interest deduction$93,600

Tax on the RRSP withdrawals that pay it-$93,600

Less RRSP tax, because the RRSP is smaller (100% taxable)$532,282

Capital-gains tax on the money outside it (50% included)-$305,211

All figures are after tax: what is left if everything were cashed out that day, the RRSP taxed at your current marginal rate of 36% and investment gains at half that.

Net-worth growth curve

Scenario A — Baseline
Scenario B — Loan + Meltdown

Tax on retirement income

Same $150,000 a year. Taken entirely from the RRIF it is all taxable income; taking $30,000 of it from a non-registered account means only half the gain is included.

Less tax per year

$8,100

Over 20 years of retirement

$162,000

Indicative figures only. Built on 2026 Canadian tax brackets without indexation, and excludes CPP/EI, OAS clawback, AMT, provincial surtaxes, and health premiums. Real tax outcomes depend on your full situation — talk to a licensed advisor.