EQ Bank aims to become a household name + MORE Feb 20th

A US traditional individual retirement account (IRA) is a bit like a Canadian registered retirement savings plan (RRSP). A 401(k) is like a defined contribution (DC) pension plan. In both cases, tax-deductible contributions can be made by a retirement saver with future withdrawals generally subject to tax. 

Spousal beneficiary

When a spouse inherits an IRA or 401(k), they can take over the account as an inherited account or transfer the account into their own IRA or 401(k) on a tax-deferred basis. 

IRA and 401(k) accounts generally have required minimum distributions (RMDs) beginning at age 73. These are subject to US withholding tax for a Canadian resident, and Canada taxes the withdrawal with a credit for the US tax already withheld. 

A US citizen living in Canada must report their worldwide income on both a Canadian and US tax return. 

Featured RRSP Accounts

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EQ Bank

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Booking giant Expedia is partnering with Affirm to provide buy now, pay later (BNPL) installment payment methods in the travel sector. Touted as an advance in flexibility and choice, the option will appear when booking select lodging and travel packages. But in a world of travel-specific credit cards, the question remains: are BNPL purchases worth it, or do they come with their own baggage? We unpack the details so you know exactly what you’re getting. 

How Expedia and Affirm will work together

Launched in the mid-1990s, Expedia is a well-established travel portal where you can book flights, hotels, packages, cruises, rental cars, and more. Commonly, people pay for reservations using a credit card, but according to the company’s recent press release, there’s a demand for more payment options and transparency.

Enter Affirm. As a partner, Affirm will offer Expedia customers the option to buy select bookings and pay for them over time on a monthly payment plan.

The fine print

Not all Expedia offerings are eligible for the BNPL payment option…

Canada’s seventh-largest bank is a lender the vast majority of Canadians have never heard of. It has no branches, credit cards, or wealth management offerings.

That could all soon change, says Chadwick Westlake, who became chief executive of EQ Bank last August and already announced a transformational, potentially career-defining deal to buy PC Financial in December. “We will become a household name by the end of this year,” he said. Buying the PC Mastercard portfolio and PC Money accounts, while bringing on Loblaw Cos. Ltd. and its PC Optimum loyalty program into a partnership, will put the EQ Bank brand into thousands of grocery stores and ATMs across the country.

Major deal and leadership shifts signal a new era

Westlake said he knew when he stepped into the role that he had to make this deal happen to raise the profile of a bank that 80% to 90% of Canadians don’t know. “This was a top priority, because I truly believe this is the key to creating a scaled significant challenger for Canada…