By contributing to your RRSP, the government “recalculates” your taxable income. In this case, it treats it like you only made $44,152.10 (5). And because you made less income, you pay less tax (6). Therefore, because there is a difference in how much tax you already paid (2) a...
The most significant consideration here is likely impact on taxable income, but there are other considerations that you need to account for. First off, contributing to your TFSAs should not affect you or your company pension, nor will it affect your eligibility for government benefits like OAS....
A spousal investment loan strategy is where a higher-income spouse loans money to the lower-income spouse for the purposes of investing and staying onside with CRA. You would think that one spouse could simply give money to another spouse to invest in a taxable (non-registered) investing acco...
RRSP withdrawals are subject to withholding taxes and are considered taxable income. For some people, money in a TFSA might be too easy to access. The future is uncertain The younger you are, the harder it is to determine which account to put your retirement money. When in doubt – ...
You’ll still have to pay income tax on this money when you eventually withdraw it, but the idea is that you’ll be in a lower tax bracket then.. because you will have quit your job and your only taxable income will be your 401(k) withdrawals. If you try to withdraw the money ear...