Common Account Types

Registered Retirement Savings Program (RRSP)

You can contribute a yearly maximum as shown on your notice of assessment from the Government of Canada. Every dollar you contribute reduces your taxable income.

Tax Free Savings Account (TFSA)

TFSAs began in 2009 with a yearly maximum of $5,000/year. If you don’t use it this year, you can add it to next year’s total. All money in this account can be withdrawn tax free. Any withdrawals made in the current calendar year will be added back to your available contribution room in the next calendar year. Please check with the CRA for your current maximum which would include previous years unused room.

Registered Education Savings Plan (RESP)

This is for educational purposes. The government will grant 20% to a yearly maximum contribution of $2,500. For contributions missed in previous years the government will also grant 20% to a yearly maximum contribution of $2,500. There is a lifetime limit of $7,200.00 per beneficiary for the CESG Government Grant.

Open Account (OPEN)

Simply invest money without maximum and pay taxes on gains as they occur.

Questions? (Remember, there are no silly questions). Contact Dan.