RSP Tip 5. Understand investment income. Consider holding more conservative investments that create interest income inside the RRSP. Alternatively hold investments that produce tax preferred investment income like capital gains and dividends outside the RRSP or even in a Tax Free Savings Account (TFSA). https://www.freedom55financial.com/ #F55 #RSP #RetirementPlanning #TFSA
RSP Tip 4. Start early. Rather than waiting until the March 2, 2019 deadline, consider making your contribution now, or as early as you can, to begin accumulating tax-free income on the contribution as soon as possible. https://www.freedom55financial.com/ #F55 #RSP #RetirementPlanning
RSP Tip 3. Watch your tax bracket threshold. If you're making a large RRSP catch-up contribution, consider only claiming enough of the resulting deduction to reduce your taxable income in the top tax bracket. You can carry forward the remaining deduction for greater tax savings in a future year against income that is taxed in the higher tax brackets. Your yearly notice of assessment will track your unused contribution. https://www.freedom55financial.com/ #F55 #RSP #RetirementPlanning
RSP Tip 2. Make your maximum allowable contribution for 2018. You can contribute 18% of your “earned income” in 2018 or $26,500; whichever is less (if you're a pension plan member, your maximum contribution may be reduced by a figure known as the pension adjustment – PA). https://www.freedom55financial.com/ #F55 #RSP #RetirementPlanning
RSP Tip 1. Know you marginal tax rate. One of the most important benefits of the RRSP is the tax deduction for the current tax year. While most people put money into the RRSP to save tax, many do not know how much tax they are saving. The easiest way to determine the benefit of your RRSP contribution is to know what your current marginal tax rate is when you combine the federal and provincial taxes.
#F55 #RSP #RetirementPlanning
