RRSP contributions are tax-deductible, which means that they can help reduce your taxable income for the year in which you make the contribution. However, RRSP withdrawals are taxable at your annual marginal tax rate, plus you’ll pay a withholding tax for any lump sum withdrawal from your RR...
You may be able to reduce the amount of tax you owe on your income. RRSP contributions made by you and your employer are tax-deductible. Cons Contributions from your employer count toward your annual maximum contribution limit. You must have enough contribution room to accommodate both your cont...
Depending on your financial situation, however, you may not want to take your CPP payments right away because for every year you wait, your CPP payout increases. As for how much your CPP payment will be, that depends on two main factors: how much you earned during your career and how o...
If you’re saving for retirement, an all-Canadian pension plan to partner up with is theSaskatchewan Pension Plan. SPP is open to any Canadian with available RRSP room. You decide how much you want to contribute to your savings, we’ll take on the more difficult job of investing your sav...
I think a lot of the reason that you don’t read much about it, is that most folks don’t have a lot invested outside of a TFSA and/or RRSP. It does sting non-registered accounts and real estate for sure. If you try and do something fancy with dividends and corporations, they’...
The maximum out-of-pocket is there to protect the consumer, making sure that what the insurance provider is asking them to pay is not too much. Usually, if the premium is high, the out-of-pocket limit is low. What Is Coinsurance?
TFSAs and RRSPs are both savings vehicles with tax advantages, but they serve different purposes. Contributions to an RRSP are tax-deductible, which means they can reduce your taxable income for the year you contribute. Investments within an RRSP grow tax-deferred until withdrawn. Meanwhile, cont...
If taken as cash, AIPs are taxable income and subject to the regular income tax rate plus an additional federal penalty tax of 20%, or 12% in Quebec. To avoid taxation, the subscriber can roll over as much as $50,000 into an Registered Retirement Savings Plan (RRSP) or keep it open...
Frank would like to have an additional $1,500 a month after tax for spending beyond RRSP income. For now, they’d like to know if it’s feasible for Marie to retire at 58 and if they’ll be financially secure once the kids leave home. What should they do about the segregated funds...
Brian is the Co-founder and Lead Real Estate and Personal Finance blogger at Spark Rental. He has 15 rental properties, and also provides free video training about earning passive income through rentals atSnapLandlord.com How much do you need for retirement and why?