The Ruppert Team
The FHSA is an opportunity for prospective first-time home buyers to save up to $40,000 on a tax-free basis towards the purchase of a first home in Canada. Read more about the FHSA in this overview. In this tax column, Jamie Golombek explains why you should pay close attention to the qualifying rules, especially if you are considering moving in with a partner who may already own their own home.
The FHSA, RRSP Home Buyers’ Plan and TFSA can help you save for your first home. Which one is right for your family? While the FHSA, RRSP Home Buyers’ Plan, and TFSA offer various tax benefits, some key differences can help you choose what’s right for you. The good news is you don’t have to choose just one.
RRSP Home Buyer's Plan
For first-time home buyers only?
Yes, money withdrawn from your RRSP through the Home Buyer's Plan must be repaid to your RRSP in equal payments over the next 15 years
Want to learn more about the FHSA? Here's more information about this registered account that can help you/your adult child achieve home ownership goals.
Planning for a child's education Recognizing the dramatically increasing costs of post-secondary education, many people would like to start setting funds aside for children or grandchildren as soon as possible. And, of course, they prefer to use the most tax-effective savings strategies available. Often, the strategy chosen largely depends upon their financial means, the age of the children, and the length of time left to save. RESP tip sheet A comprehensive tip sheet featuring key benefits and highlights of RESPs Making RESP withdrawals High school graduation day has come and gone, and your son or daughter is taking the next step in their educational pursuits by starting college or university. Fortunately, you’ve planned for this day by helping to build your loved one’s education fund in a Registered Education Savings Plan (RESP). When you’re ready to begin making withdrawals from your RESP, it’s important that you meet the payment conditions of the plan. RESP deadlines The Canada Education Savings Grant (CESG), a federal government grant, and other provincial government programs (as applicable) make RESPs an attractive option for those saving for a child’s education. There are, however, certain deadlines you should be aware of that may affect a plan beneficiary’s ability to qualify for these grants.
Check out these comprehensive guides on TFSAs. TFSA - What are you saving for? 2024 guide. The Tax-Free Savings Account (TFSA) gives Canadian residents a way to save, tax-free. When you contribute to a TFSA, your investments can grow tax-free and you will not pay tax on income or capital gains earned within the account, even when you make a withdrawal, providing you follow the rules on contribution limits and eligible investments. Reference summary A comprehensive guide featuring information on benefits, contributions, withdrawals, swaps, and death of plan holder. Why you should contribute every penny of your limit Just do it: the case for tax-free investing
The deadline to make a RRSP contribution for the 2023 tax year is February 29, 2024. You can claim a deduction on your 2023 income tax return for RRSP contributions up to 18% of your 2022 earned income, to a maximum of $30,780 less any Pension Adjustment, plus any unused contribution room from prior years and Pension Adjustment Reversal. To find your RRSP contribution limit for the current year, check your federal Notice of Assessment for the previous tax year or log on to CRA's My Account. The following are resources on RRSPs and RRIFs. If you have any questions, contact our office -- we have the expertise and desire to help protect your legacy. Creating retirement income RRSP maturity options RRSP summary guide Ten RRSP hacks Pension splitting Start planning for the retirement you want with an RRSP When an RRSP beneficiary faces a tax liability
