Update: The federal government has clarified their plans for the Tax-Free Savings Account (TFSA). The TFSA contribution limit for 2016 will be reduced to $5,500 as planned. Everyone will be able to carry any unused contribution room into the next year, giving a cumulative contribution limit of $46,500 for 2016. Our last article Read more about TFSA Update – Year End 2015[…]
Merry Christmas and Happy New Year to our readers! What could be a better holiday present than additional contribution room so you can earn tax free returns on your investments? We would like to take this opportunity to remind our readers, that as of January 1, 2015, those of you that are 18* and over Read more about TFSA Contribution Room Increase[…]
Most people assume that the name Registered Retirement Savings Plan (RRSP) is a clear give-away for the preferential vehicle to use for retirement savings. It turns out that the distinction is not as clear-cut as the name would lead you to believe. This summary aims to touch on the important points that should guide you Read more about How to decide between an RRSP or TFSA[…]
The government can use taxes to discourage behaviour, or give tax breaks to encourage it. Several years ago, the Government of Canada decided to encourage saving by creating a Tax Free Savings Account (TFSA). Tax-Free Savings Accounts (TFSA) operate in the following manner. One first earns income from various sources that is taxed. Then, this Read more about How a TFSA works[…]