How much credit card debt does the average Canadian have? + MORE Nov 7th
FHSA withdrawal rules and rental property advice for a first-time home buyer + MORE Oct 16th
You opened an RESP—now what? Nov 27th
How much money does the government contribute to an RESP? + MORE Feb 13th
Compare the best savings accounts in Canada for 2023 + MORE Sep 11th
What Canadians living in the U.S. need to know about TFSAs
– moneysense.ca
However, just recently, I learned that my TFSA accounts are no longer “tax-free,” and income from them must be reported by U.S. residents on their tax returns. Based on the amount of time I’ve lived here, I pass the “substantial presence test” and also meet the definition of what makes a “resident alien” in the United States.
My question is, what I can do to avoid more taxes and penalties next year when I file my return for the income received this year in those two TFSAs? Should I close the accounts?–Matheus
The tax-free savings accounts (TFSAs) is a uniquely Canadian savings vehicle that allows you to contribute up to a specified maximum amount annually and earn interest or capital gains tax-free…
Laura, 36, depleted her savings to live abroad and study. How can she rebuild her nest egg on $72,800 a year?
– thestar.com
The best RRSP investments 2022
– moneysense.ca
You can open an RRSP and contribute income up until the year you turn 71, at which point it has to become a registered retirement income fund (RRIF) and you must begin to withdraw the money as taxable income. Read on to learn about the best RRSP accounts in Canada.
The best RRSP accounts in Canada for 2022
Best RRSP savings account: EQ Bank RSP Savings Account* (2…
Laura, 36, depleted her savings to live abroad and study. How can she rebuild her nest egg on $72,800 a year?
– thestar.com
How do the RRSP contribution carry forward rules work?
– moneysense.ca
The rules around RRSP contribution room
As soon as a taxpayer starts to earn income—like employment income, self-employment income, royalties, research grants or net rental income—they accumulate room for their registered retirement savings plan (RRSP). There are no age limits, so a teenager with a part-time job can start to build their RRSP room as long as they file a tax return to report their earned income.
How does RRSP carry forward work?
Your RRSP room carries forward, meaning the amount is cumulative. So, 18% of your earned income for the previous year, up to the current year’s maximum contribution limit, becomes your RRSP room for the year. For 2022, the maximum is $29,210 for taxpayers with at least $162,278 of earned income in 2021. This gets added to any previously unused RRSP room from the past…