I am presenting this article because a lot of people don’t really understand the tax implication of each of RRSP, RESP, and TSFA contributions. If you truly understand the short term and long term tax implications for all these instruments then you can truly understand and make an informed decision on where to put your money if you had to choose one. Therefore I am first explaining the tax implications in the most basic and short term first: RRSP (registered retirement savings plans) contributions made by you into your account are deducted from your income in the tax year you made the contribution. Ok that’s not entirely true, you can…
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RRSP Pitfalls that CRA does not tell you
If you are like most Canadians then you are banking a portion of your retirement plan with your Registered Retirement Savings Plan (RRSP). Before I get into the details of this article, I want to first qualify that I think everyone should have some RRSP regardless of what I have to say about them herein. We all will retire one day and the RRSP should be factored into all our equations. The features of the RRSP is that when you are young(er) you will make a deposit to your RRSP and in turn you get to deduct that amount off the top of your net income that is used for…