In Budget 2011, the Government proposed a clamp down on certain swap transactions between RRSPs and other accounts: Benefits derived from asset purchase and sale transactions (“swap transactions”) between RRSPs and other accounts controlled by the RRSP annuitant. A swap transaction is a transfer of property (other than a transfer that is a contribution or [...]
A few years back, money manager PH&N put out a report on whether investors should save inside a RRSP or outside. The report, titled, The Retirement Savings Debate: Inside or Outside the RRSP structure, took a closer look at some opinions that it is more efficient to save for retirement outside a registered plan with [...]
A recent column in The Financial Post (See Were RRSPs a major mistake?, FP, Jan. 19, 2011) by John Newell, a Toronto retiree, makes an amusing rant against RRSPs. The author makes one good point: it doesn’t make much sense for Canadians with little or no income to contribute to a RRSP, especially with the [...]
It is undeniable that Tax-Free Savings Accounts (TFSAs) have unique advantages but I’m somewhat surprised by some recent reports that suggest that a lot of Canadians would be better off contributing to a TFSA instead of a RRSP. These arguments forget to take into account the unique advantages offered by RRSPs. Defer income taxes RRSPs [...]
Today is the deadline for RRSP contributions for the 2009 tax year. If you haven’t done so already, you have until 11:59 PM tonight to make a contribution. If you don’t have a plan already, your best bet might be to park the contribution temporarily in cash until you have a plan in place. Like [...]
The RRSP season will reach a crescendo this week with Canadians rushing in to “buy RRSPs” to beat the March 1, 2010 deadline. Even if you decide to make a last-minute contribution, you do not have to rush your investment decision. If you are new to the RRSP game, you can open a RRSP account [...]
A recent C. D. Howe report titled, Cutting Through Pension Complexity: Easy Steps Forward for the 2010 Federal Budget, recommends that the Federal Government raise the contribution limit for RRSPs from 18 percent to 34 percent of earned income (and correspondingly, the maximum dollar amount from $22,000 to $42,000) in the upcoming budget. Recommendations such [...]
You may want to check out a recent C. D. Howe Institute report titled Saver’s Choice: Comparing the Marginal Effective Tax Burdens on RRSPs. The report concluded that TFSAs are a more tax-efficient retirement savings vehicle than RRSPs for many Canadians because the effective rate of tax payable on retirement income is often higher than [...]
If you hold securities in a taxable portfolio, you can contribute them in-kind to your RRSP. But, you have to keep in mind the tax implications because an in-kind transfer is considered as a deemed disposition. If you have capital gains, you’ll have to declare it in your tax return. However, you cannot claim a [...]
Today’s question is from Christine: How can I move a self-directed RRSP account from my broker to a self-directed RRSP account with TD Waterhouse? It’s quite simple to transfer a RRSP account between different institutions — look for a transfer authorization form from the institution you want the account transferred to (the TD Waterhouse form [...]
