Neepawa Income Tax (1997) - "You have a friend who does taxes"
RSS

Recent Posts

How to know when to start drawing on your RRSP
Are RRSPs even relevant anymore?
Which pays off more: Getting a university degree or investing the tuition money?
Taxes are dreaded by most Canadians, but not by all
Five commandments to help boost your retirement savings

Categories

Blog Information
General Tax Discussion
Investing
RRSP
Small Business
powered by

Tax Discussions

RRSP

How to know when to start drawing on your RRSP

Are RRSPs even relevant anymore?

Five commandments to help boost your retirement savings

 
Everybody says you should save for retirement. The problem is they don’ttell you when to save, where to save, or what to save. So here are my 5Commandments to Retirement Saving:
 
 
 
1.Thou shalt save a lot when you can, but not when you can’t.
 
This meansthere are periods in your life when saving is much easier than others. Don’tfeel so guilty about not being able to save much during your most expensiveyears. Usually the best times for saving would be before children, and afterthey are out of the house.

How to move from an RRSP to a RRIF

After years spent paying into a registered retirement savings plan (RRSP),investors eventually have to use the funds as post-retirement income.
 
RRSPs must be collapsed by Dec. 31 of the year in which the holder turns71. If RRSP savings are not put into a tax-deferred income plan by that time,the entire value of the RRSP becomes taxable income.
 
A registered retirement income fund, or RRIF, is one of the most commonoptions Canadians choose to convert RRSP savings to tax-deferred income.
 

RRSP Season… or is it?

 
 
Wow! February already and the RRSP purchase deadline for 2013 is fast approaching. This deadline for those under 69 is March 1 this year, 60 days after the end of the tax year.
 
RRSPs can save you money by deferring the taxes that would be owed on the amount of RRSP purchased. Simply put if you are in a 40% tax bracket, a $1000 RRSP purchase will save you $400 in taxes for that tax year. Purchased before February 29, the tax savings can be used in the previous tax year. There are other considerations depending on the individual or family circumstances, but overall that’s the drift.

The Nuts and Bolts of RRSPs

While many Canadians are stressed about RRSPs and the looming contribution deadline, Jason Casagrande feels excitement. The 34-year-old Torontonian, however, has been investing since he was 15, and works as a certified financial planner with BMO’s investment and retirement planning department. “Seeing the accounts grow is my motivation,” Mr. Casagrande says.
 
The rest of us hear the term RRSP — maybe even just the first two letters — and get glassy-eyed, or even wide-eyed (60% of respondents of a recent BMO poll reported suffering from anxiety about gathering retirement savings).

RRSP or TFSA? Tuck money away into both if possible, experts say

CALGARY — It’s the battle of the acronyms — RRSP or TFSA?
 
They’re both savings vehicles that can help with your tax bill, but which one reigns supreme will depend on your own individual situation.
 
In ideal circumstances there would be no showdown — Canadians would sock money away into both, experts say.
 
But circumstances aren’t always ideal.
 
“Maybe it’s a quality of life decision or maybe it’s truly just there is not the availability of income or assets to contribute to both,” said John Tracy, senior vice president of retail, savings and investing at TD Canada Trust.

RRSP pitfalls to avoid

 
(Special) - While the Registered Retirement Savings Plan (RRSP) is a great vehicle to help Canadians save for their retirement, there are some pitfalls that investors may not knowabout and should try and avoid.
 
Many people, forexample, confuse their contribution limit with the deduction limit.
 
The deduction limit isset at 18 per cent of your previous year's earned income, up to a dollar limit,which changes every year. The maximum dollar limit for the 2012 tax year is$22,970, up from $22,450 in 2011, and will rise to $23,820 in 2013.