Retirement Planning: 3 Simple RRSP Investing Tips for You fool.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.ca Daily Mail and Mail on Sunday newspapers.
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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.
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