Now, unlike RRSPs, there is no tax benefit to contributing to an RESP (you don’t receive tax credits). But when your child withdraws from the account, it is practically tax-free (your child likely is making less than the base individual amount since they are going to school) – so ...
Now, unlike RRSPs, there is no tax benefit to contributing to an RESP (you don’t receive tax credits). But when your child withdraws from the account, it is practically tax-free (your child likely is making less than the base individual amount since they are going to school) – so ...
Alternatively, if you say, live in Ontario, and are in the highest possible tax bracket, you’d pay a marginal tax rate of close to 40%. Of course, if you’re earning more than $220,000 in taxable income in retirement, then you’re doing pretty all right! Note: There is a further...