Not sure how to make a savings plan? Read on…
Latest News
How to plan for taxes in retirement in Canada + MORE Oct 22nd
Ask MoneySense
When I retire and start to take an income, I would like to make sure the withholding tax is sufficient to cover what I would owe, when all my sources of income are considered.
In my case I will have CPP, OAS, a small pension, RRSP/RRIF income.
For each of these sources can I ele.... More »
Stock news for investors: Goeasy shares plunge nearly 60% after lender suspends dividend + MORE Mar 18th
Here’s a round-up of news for Canadian investors this week.
Goeasy
Algoma Steel
Transat
RBC
MDA Space
Empire
Featured RRSP Accounts
featured
EQ Bank
Build your retirem.... More »
Best FHSAs in Canada: Where to get the new first home savings account + MORE May 8th
First home savings account (FHSA) highlights
The FHSA is a type of registered account that allows you to contribute up to $8,000 annually, up to a lifetime limit of $40,000, to save for the purchase of your first home.FHSAs became available on April 1, 2023. However, availability is currently limite.... More »
Can you use the Home Buyers’ Plan to buy a foreign property? Mar 20th
Ask MoneySense
I am looking to use my RRSP to buy a vacation property in Portugal. How much can I take out tax free?—Andy
Tax implications of buying property in another country
I think you are referring to the Home Buyers’ Plan (HBP), Andy, when you ask about a tax-free registered retirem.... More »
Can you transfer a RRIF to a TFSA—and what are the tax implications? + MORE May 28th
Ask MoneySense
What is the implication of transferring money from my RRIF to TFSA on my income and taxes? Do I need to allow for a 30% deduction when I withdraw and it becomes income to be taxed at the end of the year? Or it doesn’t affect my income?
—Soheir
Transfers between registered a.... More »
My three kids chose different educational paths. How do I withdraw RESP funds in a way that’s fair to them and avoids unnecessary taxes?
– moneysense.ca
Q. I have a Registered Education Savings Plan (RESP) for my three children, the youngest of whom is starting university this fall. We have made some withdrawals for the older two kids but the plan is still well-funded. Our middle child has decided to pursue a co-op university program, which is essentially self-funded. When we contributed funds to the plan, part of the funds were put aside under his name and the government added grants to that. To be fair to him (and to avoid taxes), I assume there is a minimum amount that I should withdraw as an educational assistance payment (EAP) for him. What are my next steps?
–Paul
A. Congrats on thinking ahead, Paul. And you’re correct: There is likely a minimum educational assistance payment (EAP) withdrawal you’ll want to make, which will benefit you both. That amount depends on how fully funded your RESP is.
As a reminder, the EAP is made up of the government grant (up to a maximum of $7,200) and the accumulated earnings on both your contributions and the grant itself…
–Paul
A. Congrats on thinking ahead, Paul. And you’re correct: There is likely a minimum educational assistance payment (EAP) withdrawal you’ll want to make, which will benefit you both. That amount depends on how fully funded your RESP is.
As a reminder, the EAP is made up of the government grant (up to a maximum of $7,200) and the accumulated earnings on both your contributions and the grant itself…
