Types of tax-advantaged savings :
A (RRSP) registered retirement savings plan that has special tax advantages to which you or your spouse or common-law partner contribute.
Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.
A tax-free savings account (TFSA) allows you to save money for any purpose, without paying taxes on the investment growth.
- If you’re 18 or older, you can save up to $5,500 every year in a TFSA.
- Your contributions will not be deductible for income tax purposes, but investment income, including capital gains, will not be taxed, even when withdrawn.
A registered education savings plan (RESP) is a tax-sheltered way to help you save for a child's post-secondary education.
- Parents, grandparents and friends can contribute to a lifetime total of $50,000 per child – and any investment growth is not taxed until it is withdrawn.
- Automatic government grants can make your RESP grow even faster.