RRSP

Great benefits of opening an RRSP

A Registered Retirement Savings Plan (abbreviated to an RRSP) is a savings account which offers you a simple way to put money away for your retirement. A key feature of an RRSP is the fact that it is registered with the federal government. Here, we will explore five notable reasons to save for your retirement in this way.

  • Your investment is tax free
    This is a great feature of an RRSP. Providing that you keep your investment earnings in the plan, you won’t pay any tax on them. This, of course, means that your savings have the potential to grow at a faster rate.
  • Your contributions are tax deductible
    You are able to show the contribution that you make towards your RRSP as a deduction on your annual tax return, which can add up to considerable savings for those in the top tax bracket. What’s more, you can carry forward this allowance to future years, if your income in one year is lower than usual.
  • You can save even more tax by taking out a spousal RRSP
    Another great tax benefit of these plans is the fact that you can combine your tax-free savings within a spousal RRSP and then more equally split your retirement income between you, again leading to potential further tax savings.
  • You can transfer your RRSP when you retire
    This means that you can easily move the funds invested in your RRSP to an annuity or a RRIF at the time of your retirement to receive regular, staggered payments – though you should note that you will have to pay tax on these payments on a yearly basis.
  • You can withdraw from your RRSP under certain conditions
    You won’t pay tax on withdrawals from your RRSP in particular circumstances. For instance, you are permitted to withdraw up to $25,000 for a down payment on your first home, or up to $20,000 to pay for education costs (funding rules apply).

Latest News

2022 Alberta Budget Highlights

On February 24, 2022, the Alberta Minister of Finance announced the 2022 budget. We have highlighted the most important financial measures you need to know, with an emphasis on: • Increasing the capacity of the healthcare system • Supporting Albertans to get back to work • Committing to the fiscal plan Budget 2022 includes no changes to personal or corporate tax rates.

Extended COVID-19 Federal Emergency Benefits

On Friday, February 19, 2021, Prime Minister Justin Trudeau announced an extension to: - Canada Recovery Benefit - Canada Recovery Caregiving Benefit - Canada Recovery Sickness Benefit - Employment Insurance

Self-employed: Government of Canada addresses CERB repayments for some ineligible self-employed recipients

Great news for some ineligible self-employed Canadians who received the Canada Emergency Response Benefit (CERB)

Government of Canada to allow up to $400 for home office expenses

For the 2020 tax year, the Government of Canada introduced a temporary flat rate method to allow Canadians working from home this year due to Covid-19 to claim expenses of up to $400.

Highlights of the 2020 Federal Fall Economic Statement | Additional $20,000 CEBA loan available now

Finance Minister Chrystia Freeland recently provided the government's fall economic update. It included information on the government's strategy for dealing with the COVID-19 pandemic and its plan to help shape the recovery. We've summarized the highlights for you: • Corporate Tax Changes, including extensions to subsidy programs. • Personal Tax Changes, including additional Canada Child Benefit Plan payments and a new "Work from home" tax credit. • Indirect Tax Changes, including the proposal to charge GST/HST on services provided via digital platforms, as well as the temporary removal of GST/HST on face masks and shields. For business owners, as of December 4th, the CEBA loan has been expanded by an additional $20,000.

Applications for the new Canada Emergency Rent Subsidy starts today!

The new Canada Emergency Rent Subsidy is open for applications today! Unlike the previous program, this subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords. CERS covers up to 65% of rent for businesses, charities and non-profits impacted by COVID-19. An additional 25% Lockdown Support is available during a public health lockdown order.

Applications for Canada Recovery Benefit now open!

The Canada Recovery Benefit (CRB) is now open for applications. If you are eligible for the CRB, you can receive $1,000 ($900 after taxes withheld) for a 2-week period. If your situation continues past 2 weeks, you will need to apply again. You may apply up to a total of 13 eligibility periods (26 weeks) between September 27, 2020 and September 25, 2021.

New Canada Emergency Rent Subsidy | Wage Subsidy extended | CEBA additional $20,000 loan

Great news for businesses! The new Canada Emergency Rent Subsidy will be available directly to business owners who need rent relief. The Wage Subsidy has been extended to June 2021. And the CEBA has been expanded to provide up to $20,000 interest-free loan.

Applications for Canada Recovery Sickness Benefit and Caregiving Benefit starts today!

Starting October 5, 2020, the Government of Canada will be accepting online applications for the Canada Recovery Sickness Benefit (CRSB) and the Canada Recovery Caregiving Benefit (CRCB).