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Page 19 - பதிவுசெய்யப்பட்டது ஓய்வு சேமிப்பு திட்டம் News Today : Breaking News, Live Updates & Top Stories | Vimarsana

RRSP Investors: 2 Canadian Stocks to Buy Now and Hold Forever

Image source: Getty Images The Canada Revenue Agency (CRA) is giving you one last chance to reduce your 2020 tax bill. You can contribute 18% of your income or $27,230, whichever is lower, to your Registered Retirement Savings Plan (RRSP) by March 1. When you do your 2020 taxes in March, you can deduct your RRSP contributions between March 2, 2020, and March 1, 2021, from your taxable income. Use your RRSP to invest in stocks that can give you a strong return for a lifetime. The RRSP investment strategy  The RRSP is an account to plan for your long-term goals like retirement, education, or house purchase. If you withdraw under the RRSP’s Home Buyers’ Plan or the Lifelong Learning Plan, the CRA will not tax this amount. For any other withdrawals before age 71, a withholding tax of 10-30% applies. Moreover, they are added to your taxable income.

Kevin Greenard: Unused RRSP contributions — mistake or strategy

Kevin Greenard: Unused RRSP contributions — mistake or strategy
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CRA Tax Benefits: Last Chance to Reduce Your 2020 Tax Bill Using an RRSP

Image source: Getty Images February is almost over. It’s time to take your income tax filing seriously. You have until March 1 if you want to save some tax using the Registered Retirement Savings Plan (RRSP). If you are eligible to file your tax return, you are eligible to open an RRSP and contribute up to 18% of your earnings, or $27,230, whichever is lower. The Canada Revenue Agency (CRA) allows you to deduct your RRSP contribution from your 2020 taxable income. If your taxable income is $50,000, you can reduce it to as much as $41,000 by contributing $9,000 (18% of $50,000) to an RRSP. These deductions can save you as much as $2,500 in the tax bill. But is a $2,500 tax saving a good trade-off for a $9,000 investment?

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