Tax season always brings up questions about one popular savings vehicle: the RRSP. And it’s no wonder. The RRSP is one of the most useful and most complex savings vehicles available to Canadians. RRSP stands for Registered Retirement Savings plan, and is a tax-advantaged account available to Canadians to help them save for retirement. RRSPs are always a popular topic at tax time because they can drastically affect your income tax return in a very positive way. How the RRSP works You can contribute up to 18% of your gross income to an RRSP each year. In years where you do not use all your contribution room, you can carry unused contribution room forward to future years. In your RRSP, your money grows tax-free until you make a withdrawal, which makes it a great tool to defer, and ultimately reduce, the total income taxes you pay over your working lifetime. […]
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