Making the right decisions for your savings takes careful planning. We can help you in establishing a smart savings plan and help you decide which products are right for you.

TFSA

A Tax Free Saving Account is an account in which investment or interest income is earned tax-free. Since contributions are made from funds that have already been taxed, there is no tax payable when money is withdrawn from a TFSA.

There are a few rules that are important to understand when contributing to a TFSA:

• TFSA contribution room accumulates every year. For 2023, the limit is $6500.00.
• When you contribute less than the maximum annual contribution, the difference is referred to as the unused contribution room. Contribution room is cumulative – that is, any unused contribution room at the end of the year is carried over to the next year. As of 2023, the total TFSA contribution room is $88,000.00
• If you withdraw funds from your TFSA, you do not lose contribution room. The amount withdrawn is added back to your contribution room in the following year.
• You must be 18 years of age or older and hold a valid social insurance number.

RRSP

A Registered Retirement Savings Plan is a savings plan designed to both encourage and help Canadians save for retirement. Contributions to an RRSP are tax deductible, meaning that when you make a contribution to an RRSP, you are reducing your taxable income by the amount of money you contribute to the plan.

If you withdraw funds from an RRSP, the amount withdrawn will be added to your income in the year of the withdrawal and taxed at your marginal tax rate. As a result, RRSPs are normally treated as long-term investments.

Let’s talk about the right investment for you based on your current and projected financial circumstances and help you build a personalized savings plan to reach your goals.

Check out our TFSA and RRSP Calculators here