WHAT IS A RRSP? A Registered Retirement Savings Plan (RRSP) is a retirement account that’s existed since 1957. RRSPs were introduced by the government to help Canadians save for retirement. The main benefit of RRSPs is that tax on RRSP contributions is deferred until retirement. WHO CAN ISSUE RRSPs? Banks Insurance companies Credit unions and Trust companies can issue RRSP DEADLINE FOR CONTRIBUTING TO AN RRSP For the 2019 tax year you can contribute to an RRSP until March 2, 2020. HOW DO YOU CLAIM YOUR RRSP DEDUCTION? In your Income Tax and Benefit Return, you can deduct RRSP contributions that you made. Your RRSP issuer will give you a receipt for the amounts that you contributed. If you c
WHAT IS A TAX- FREE SAVING ACCOUNT (“TFSA”)? Individuals who are 18 years of age or older and who have a valid Social Insurance Number (SIN) to set money aside tax-free throughout their lifetime. WHO CAN OPEN A TFSA? The TFSA program began in 2009. Any individual who is 18 years of age or older and who has a valid sin is eligible to open a TFSA. And also a person who determined to be a non-resident of Canada for income tax purposes allowed to open a TFSA. However, any contributions made while a non-resident will be subject to a 1% tax for each month the contribution stays in the account. WHAT TYPE OF TFSAs ARE THERE? There area three type of TFSAs can be made: Deposit Annuity Contract Arr
