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Hi there,
Question related to Tax..
Can I distribute Principal amount of home loan under 80C between two People..
For example.. I Have principal amount of 2Lac.. and want to distribute it in 1.5 Lac & 50k between me and my Dad.. (my dad is co-owner in loan)
Can't find answer online so asking here.. if you find it... Link will be helpful.
Thanks
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RRSP
Probably oversimplified, but:
An RRSP is our version of a 401k.
A TFSA is our version of a Roth IRA.
Use both for tax advantages, etc.
TFSA isn’t a retirement plan, it uses after tax dollars to invest in equities, bonds, and other investment vehicles your registered brokerage offers.
You’re sheltered from tax gains, but at the same time you forgo tax losses.
Hi! I moved to Toronto from NYC too.
RRSP is comparable to the 401k. There are some differences though.
The RRSP contribution limit is 18% of your previous year's income or $30k-ish (this number is set by the govt), whichever is lower. So for your first year here, you'll not be eligible to contribute. This is unlike the 401k where the contribution limit is the same for everyone.
Additionally, the employer match counts towards your contribution room, again unlike the 401k where anything your employer contributes is above the max limit.
There is no 10% early withdrawal penalty like the 401k though, however you will still have to pay taxes.
There are other tax-advantaged accounts as well such as TFSA and FHSA. Feel free to ask if you have more questions.
Thanks SVP1 & PM1 !!!!
Don’t forget universal benefits and CPP/QPP (think social security). Not much but still 2 of the 3 other retirement pillars we have not mentioned above.
Most DB retirement plans are closed to new entrants these days… so good luck scoring an employer who still provides one of those. It’s a thing of our parent’s times really.
If youre american, you're not allowed to have a TFSA. If you do you will have to file expensive tax forms.
You're allowed to have an rrsp, but be prepared to comply with fatca and fbar requirements or you'll be penalized by irs. Good news is that this is easy compared with tfsa