First home savings account: A Gen Z guide to achieving home ownership + MORE Mar 29th

Ask MoneySense
I have named my three adult children as the beneficiaries of my RRIF account. Will this account be rolled over to them on a tax-free basis?–Bob

Can you name a beneficiary on a RRIF?

Thanks for your question, Bob. A registered retirement income fund (RRIF) is one of several registered accounts available in Canada, along with the registered retirement savings plan (RRSP), tax-free savings account (TFSA) and others. These accounts can be valuable financial tools, as they offer various tax incentives and handy estate planning options, such as naming a beneficiary (or multiple beneficiaries) who will receive the assets in the account upon our death.

In all provinces except Quebec, you can name your beneficiary directly within a registered account. In Quebec, the beneficiary can only be named in a will.

Let’s review who can be a beneficiary of your RRIF account and the tax implications depending on their relationship to you.

{
“@context”: “https://schema…

In April 2022, in response to Canada’s white-hot housing market, the federal government introduced the tax-free first home savings account (FHSA). The FHSA is a new kind of registered account aimed at easing the path of Canadians to securing their first home. So, how exactly does this account work? More importantly, how can first-time home buyers leverage the FHSA to its fullest extent? Here’s what you need to know. 

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote*I’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense. Just close the tab to return.

What is the FHSA?

When the FHSA officially launches in 2023, it will allow Canadians who are 18 or older and haven’t owned a home in the current calendar year, or in the previous four calendar years, to save up to a total of $40,000 towards the purchase of a home.

Jessica Moorhouse, a millennial money expert and host of the More Money podcast, says the FHSA combines elements of the tax-free savings account (TFSA) and registered retirement savings plan (RRSP), allowing account holders to store cash, stocks, bonds, mutual funds or ETFs…

The married couple want to make sure they have enough put aside for their children’s post-secondary education while also saving for their golden years.

Becoming a home owner is a significant milestone that many young adults wish they could afford. More than two in five Canadians (43%) plan to purchase a home in the next five years, and 24% of them have yet to start saving for a down payment, according to a study conducted by The Harris Poll for NerdWallet in January. Certainly, there are many Gen Zers among that group.

While Gen Z face many hurdles at the moment, including rising interest rates and inflation, there are still ways to achieve home ownership. In our current economic climate, where many young people feel they will be lifelong renters, the introduction of the new tax-free first home savings account (FHSA) will provide some much-needed assistance.

How does the FHSA work?

The FHSA is a new kind of registered account, like the tax-free savings account (TFSA) and registered retirement savings plan (RRSP). You can contribute up to $8,000 annually toward your FHSA, up to a lifetime limit of $40,000. Contribution room begins to accumulate after you open the account, and you can carry forward any unused portion from one year to the following year, for a maximum contribution of $16,000 in a given year…