Start Saving With TFSA and RRSP | Tax Benefits for Newcomers

[@MakeThatChange]

Open your TFSA and RRSP with Wealthsimple and get a free Stock up to $3000: my.wealthsimple.com/app/public/trade-referral-signup?code=IEQ2DA

[@darke-minecraft]

This could not have come at a better time. Dealing with these decisions this week as a new resident. Thank you x

[@MakeThatChange]

Glad we made the timing work for you 🙏 good luck!

[@AmaraIbrahimKamara]

That was so informative and great helpful thank you so much ❤

[@MakeThatChange]

You are so welcome!

[@joycekarigia3710]

Great and practical content. I always look forward to your videos. Glad to be part of your KZbin family.

[@harrymalhi772]

TIP: That's a Great Knowledge, I just wanted to Add one thing. RRSP is a good tool. But if we have a lot of money in RRSP at the Retirement then Govt won't give us Pension. Because they would ask us to use our RRSP money first. So, In general they give pension to someone who doesn't have anything in savings. Maybe it would help everyone. So, it's better to start withdraw slowly from RRSP at age 55. And tax depends upon the money we withdraw. For Long term Savings there is a much better option where we can grow our money in a tax free basis. I hope it helped everyone

[@MakeThatChange]

Thank you Harry! This is important to know.

[@esther-mordecai]

Can you please elaborate on that better option for long term savings with free tax? Cheers

[@esther-mordecai]

Wow 🎉 Many thanks for this fascinating info. You are absolutely one of the best. Keep well

[@MakeThatChange]

Glad it was helpful to you!

[@sacphilip]

It’s like you read my mind. I asked a colleague at work this morning about this and I come home to your video clarifying my doubts. Keep up the good work. Glad I stumbled upon your channel ❤

[@MakeThatChange]

That’s amazing 🤩

[@うおおおおおおおおお-k8m]

Thank goodness!

[@MakeThatChange]

🙏

[@coolheeling]

Awesome, this is what I was waiting for 👍 Thank you 🙏 You ladies are awesome 🤟🥳

[@MakeThatChange]

Our pleasure!

[@petrartemov8283]

So well explained. Appreciate it!

[@MakeThatChange]

Glad it was helpful! Thank you for your support Petr! 🙏

[@ArisPrima]

very useful sis, hopefully useful and increasingly successful

[@MakeThatChange]

Thanks a lot! All the best to you!

[@Adrian-jv2ok]

Thank you for a very well made video. So informative. If I could mention one single thing to make this video better will be where you list the requirements, where it says Resident, add (temporary & permanent). What a great video over all. 🎉

[@MakeThatChange]

Thank you for the note!

[@shantobalok]

Thank you so much!! It is a great video!!

[@MakeThatChange]

You're very welcome!

[@murraytown4]

Tip - Most Canadians cannot maximise both their RRSP AND their TSFA contributions so must make a choice. As a rule of thumb, the higher your income (and marginal tax rate) the more powerful an RRSP contribution. For lower income Canadians, a TSFA is more powerful. The ‘magic’ number is around $50K. If you earn more, the RRSP is a better tool. If you earn less, it!s the TSFA. There are, however, no hard and fast rules.

[@MakeThatChange]

Thank you for the tips Murray! 🙏🙏🙏

[@CloudPitchman]

Let's look at RRSP from a different angle. Anna has lived in Canada for a few years and saved $10000 in her RRSP. Recently, she decided to never retire in Canada and move abroad for good. In the future, when she will have retired, withdrawals from RRSP will be taxed at 25% because Anna will be a non-resident in Canada. From that perspective, should Anna transfer her RRSP funds to TFSA before leaving Canada?

[@victorphillips7580]

This is a very useful information for a prospective new comer to Canada like me. Great content! Thank you.🙏❤️🌹

[@MakeThatChange]

Glad it was helpful!

[@victorphillips7580]

@@MakeThatChange You are amazing. Please keep up the good works.👍👌

[@OnThePakistan]

Hands Up! please make a video on How to file tax. A 2 Z.

[@MakeThatChange]

Will do - coming soon!

[@jhonnyrestrepo6780]

Hello! Thanks for the information. Do you know if refugees can apply for this type of savings accounts?

[@MakeThatChange]

As long as you’re deemed resident and have a SIN number in Canada.

[@Notjustanyhandle]

Good to know, thank you! I've been doing some of my own research and this has simplified what can be invested. I've been looking into student bank accounts, pros and cons for high street and online banks, would this be something you would consider covering?

[@MakeThatChange]

Yes that’s something we’ve thought about covering soon!☺️

[@hasanulislam3112]

Can temporary residents having valid SIN number open TFSA and RRSP?

[@MakeThatChange]

Yes

[@sufyanmukri9610]

Thank you for this awesome video I have a question. If i open a TFSA account in 1 bank and then i want to close it and open a new one. Will there be any tax here? Can I open multiple TFSA accounts?

[@MakeThatChange]

Yes you can open multiple TFSA accounts, just make sure you don’t bust your contribution limit in a year

[@sufyanmukri9610]

@@MakeThatChangeThank you for your reply. Any tax if i tranfer ammount to another account?

[@MakeThatChange]

nope! here's what the official Canada website says: Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, **even when it is withdrawn.** www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html#:~:text=Contributions%20to%20a%20TFSA%20are,even%20when%20it%20is%20withdrawn.

[@sufyanmukri9610]

@@MakeThatChange Thanks a ton

[@K4lr0b]

I just have a question, how long do I have to be in Canada to open one of these accounts? We are temporary residents now but hopefully soon we'll get PR.

[@MakeThatChange]

As long as you have a Canadian SIN earned Canadian income, you can open the account

[@CloudPitchman]

Let's look at RRSP from a different angle. In your example, Anna has lived in Canada for a few years and saved $10000 in her RRSP. Recently, she decided to never retire in Canada and move abroad for good. In the future, when she will have retired, withdrawals from RRSP will be taxed at 25% because Anna will be a non-resident in Canada. From that perspective, should Anna transfer her RRSP funds to TFSA before leaving Canada?

[@MakeThatChange]

Only if she is to pay less than 25% tax on it. Or move to a treaty country 😉

[@cyrillemrad4950]

This year my income has gone up, thus my tax return got lower. Im still in the 45.000$ range so TFSA is best for me to lower my net income however when doing my taxes there's no way to add my TFSA contributions, it only showns RRSP contributions. Can someone advise plz? Thanks!

[@MakeThatChange]

You cannot lower your net income with TFSA. Only RRSP

[@md.monowarhossaindipu8873]

Hello, I have query and I am not getting proper answer for it. Requesting for your support. IRCC has rejected my PR application as to incomplete application on 10 January'23. In the letter they have mentioned that, refund will happen. Do I need to make any refund request or it will come automatically? Plz.

[@MakeThatChange]

Hello, please reach out to IRCC with this question, we are not able to answer that.

[@artax-rx9mb]

writing comment for better visibility ;)

[@MakeThatChange]

Thank you so much 🙏

[@slf5141]

Im losing money in my tfsa !!!! Its not a savings account its in the market and can lose money !

[@MakeThatChange]

Of course it can, depending on what you invest into and how the markets are doing.

[@CloudPitchman]

Losing money can also happen with your RRSP. How much? Depends on your answer about the risk tolerance when you open the RRSP account

[@wiwingmargahayu6831]

black swan is amazing

[@MakeThatChange]

🙏

[@dejangaletic7884]

Saving money in Canada? There is no such a thing, the legal crime is at every corner.

[@AlexKasper]

And if you are a savvy investor, a TFSA is a double-win. There were cases of people who earned so much money in self-direct TFSAs that the CRA audited them (google it). However, like every other investment that offers any decent rate (5% or more), there are ups and downs and very few investment accounts perform better than real inflation. So RRSP or TFSA are to be taken with a grain of salt. So if possible, It's better to invest directly on someone's property (pay the principal, or put your cash in something tangible that has parity with inflation - the real killer). However, even those days might be over with today's higher mortgage rates. The bottom line is banks will never lose.

[@MakeThatChange]

Thank for sharing this Alex!

[@bappabakshi3186]

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[@MakeThatChange]

🤓