Do you know the difference between a TFSA, an RRSP, an RESP, an RDSP, the HBP when you buy a home for the first time or the LLP when you go back to school? You already have all the information on banking sites such as Desjardins, BNC to name a few. For any additional questions, see a financial advisor.
- TFSA:
TFSA contributions save tax-sheltered money for your short, medium or long term projects.
In 2021, the cap is set at $ 6,000. In 2023, this amount is 6500$.
The total contribution room is $ 88,000$. These have been accumulating since 2009 or since you turned 18, if you are a Canadian resident.
If you have already contributed to a TFSA and you make a withdrawal during a year, the amount of the latter will be added to your contribution room for the following year.
You can use your TFSA when you open a brokerage account (stock exchange)
- RRSP:
RRSP contributions reduce your taxable income. The amounts paid accumulate tax-sheltered until you retire or until your projects are completed.
You can contribute to your RRSP up to 18% of your earned income from the previous year.
The contribution limit for 2023 is $ 30 780. In 2022, this amount was $ 29,710.
For the year 2022, the deadline to contribute to your RRSP is March 1, 2023.
- RESP:
The RESP is a savings plan that saves money to fund post-secondary education, always tax-sheltered. Usually for your children, nephews and nieces and even other child that you want to please.
To encourage savings for education, the governments of Canada and Quebec provide grants that are in addition to your savings. These sometimes depend on your income.
Other important information about the Financial Markets Authority.
- RAP:
The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a disabled person who is linked.
See more details to this effect: https://www.canada.ca/fr/agence-revenu/services/impot/particuliers/sujets/reer-regimes-connexes/est-regime-accession-a-propriete.html
- LLP:
The Lifelong Learning Plan (LLP) allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to finance your education, education or that of your spouse or common-law partner. The LLP cannot be used to finance the training or education of your children, or that of your spouse's or common-law partner's children.
See more details in this regard: https://www.canada.ca/fr/agence-revenu/services/impot/particuliers/sujets/reer-regimes-connexes/regime-encouragement-a-education-permanente.html