Achieve your objectives with our comprehensive savings plans.
Whether you are seeking to purchase a home, plan a vacation, or establish your retirement savings, you will find a diverse range of products designed to assist you in achieving your objectives. Explore the benefits of our comprehensive savings plans, including Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), Flexible Health Savings Accounts (FHSAs), and non-registered savings plans.
RRSP
Registered Retirement Savings Plan
An RRSP can assist you in accumulating funds for your retirement in a tax-free manner. Furthermore, contributions to an RRSP reduce your taxable annual income, resulting in tax savings.
TFSA
Tax-Free Savings Account
A Tax-Free Savings Account (TFSA) is a savings plan that enables you to accumulate your savings tax-free. It serves as an ideal solution for various savings objectives, including short-term, medium-term, and long-term goals such as funding a trip, purchasing a home, or establishing an emergency fund.
FHSA
Tax-Free First Home Savings Account
Designed to assist future homeowners in saving for the acquisition of their primary residence, the FHSA merges the benefits of an RRSP and a TFSA. This allows contributors to deduct contributions from taxable income and generate tax-free returns.
Your Frequently Asked Questions
RRSP
How do you open an RRSP account?
To open an RRSP account, simply talk to an advisor or a financial security advisor.
- If you already have an advisor, contact him or her about your project.
- If you do not have an advisor, contact me and let’s talk
I can open your RRSP account after analyzing your financial needs and will also advise you on the investment products for your RRSP.
Who can open an RRSP account?
To be eligible for an RRSP, you must:
Reside in Canada and be employed to generate income. Additionally, you must be 71 years of age or younger on December 31 of the current year.
Can I use my RRSP contributions to purchase a home?
Certainly! In Canada, the Home Buyers’ Plan (HBP) allows individuals to access up to $60,000 from their Registered Retirement Savings Plans (RRSPs) to purchase their first property without impacting their annual income. However, meeting specific eligibility criteria is essential to benefit from this plan. Upon utilizing the HBP, participants have a 15-year period to repay the borrowed funds from their RRSP accounts or face the obligation of paying tax on the outstanding amount. This option proves particularly advantageous for new homebuyers.
Can I withdraw funds from my RRSP account before retirement?
Indeed, if the funds are not secured within a locked-in plan, you are permitted to withdraw them at any juncture. Nevertheless, the withdrawn funds will be accrued to your taxable income during the year, and you will be subject to taxation based on your applicable tax bracket at the time of withdrawal. Consequently, it is imperative to carefully consider the tax implications of an early withdrawal.
TFSA
How do you open a TFSA account?
To open a TFSA account, simply contact and talk to me about opening an account.
How much can you contribute to your TFSA?
You are eligible to contribute up to the annual contribution limit, irrespective of your income. Additionally, you have the option to carry forward any unused contribution amounts into subsequent years. Contribution room for 2024: $7,000
Are contributions to a TFSA account tax deductible?
Contributions to a TFSA save taxes on gains, unlike RRSP contributions, which are tax-deductible.
Are TFSA withdrawals taxable?
Withdrawals from a TFSA account aren’t taxable, like investment income earned in the account.
FHSA
How do I open an FHSA account?
To open a FFSA account, simply contact and talk to me about opening an account.
What is the maximum contribution room?
You are eligible to contribute up to $8,000 annually to your FHSA, with a lifetime maximum of $40,000. Additionally, you have the option to carry forward up to $8,000 of unused contribution room from one year to the next, resulting in a maximum annual contribution of $16,000.
Am I penalized if I exceed the maximum contribution allowed?
Yes. If you exceed your contribution limit, you will be subject to a penalty of 1% of the excess amount for each month that the surplus persists in the account. Please note that, unlike Registered Retirement Savings Plans (RRSPs), there is no limit on the amount you can contribute before incurring a penalty, except for the $2,000 annual contribution limit.
Can I combine my FHSA and my RRSP (under HBP) to purchase my first home?
Yes, you can combine contributions from your FHSA with returns from your RRSP to purchase your first home in Canada. This strategy allows you to maximize your down payment. Consult with your advisor to determine the most suitable approach for your specific circumstances.
If you have more questions, contact me and let’s talk.
Disclaimer: Some information on this webpage might not reflect the current information set by my product partners in the insurance industry as their policies might change without prior notice. Contact me so I can provide you with the most recent information. Thank you.
Mercedes C. Ortilla 