Issue 2 – Important Reminder to Contribute to Your RRSP and TFSA

RRSP              Benefits:

• RRSP contributions are tax deductible.
• Savings grow tax free while held in a registered plan.
• When you retire, you can convert your RRSP to an RRIF receive regular income.
• A spousal RRSP can reduce your combined tax burden.
• You can borrow from your RRSP to buy your first home or pay for your education.

TFSA               Benefits :

• Capital gains and income are exempt from paying taxes – true tax-free saving.
• You do not need earned income to contribute.
• You can make a withdrawal whenever you want, without penalty or paying tax.
• Withdrawals can be re-contributed the following year without penalty.

 

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By Charles Marleau CIM^® and William Mitchell CIM^®

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By Charles Marleau CIM^® and William Mitchell CIM^®

 

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