Tax time: Ask Tim Cestnick #Toronto #Realestate #Business #Money

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Tax time: Ask Tim Cestnick

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Chartered accountant and tax writer Tim Cestnick takes your questions on taxes and retirement savings

The tax code is full of arcane rules that many of us find hard to interpret. If you’re looking on tax tips for your RRSP or RRIF, send in a question and we’ll ask tax expert Tim Cestnick to answer it.

Among Mr. Cestnick’s many tips are:

  • Contribute to an RRSP for tax deferral and tax-free growth
  • Recognize that it’s possible to have too much in your RRSP
  • Open a self-directed RRSP once your plan assets reach $20,000
  • Pay your RRSP fees from outside your plan up to age 71
  • Know your RRSP contribution limit each year, then avoid an accumulation of contribution room
  • Make a contribution in kind to your RRSP if you’re low on cash.
  • Consider borrowing to make RRSP contributions if you haven’t got the cash.
  • Have your employer contribute directly to your RRSP
  • Avoid over-contributing to your RRSP and invest any excess outside the plan.
  • Over-contribute to your RRSP just before winding up the plan at age 71, if you have earned income
  • Boost the value of your RRSP with tax-free rollovers
  • Ensure that your child files a tax return to maximize RRSP contribution room
  • Roll your RRSP into a RRIF or annuity to defer tax well beyond age 71
  • Defer tax on your RRIF withdrawals as long as possible
  • Split eligible pension income for tax savings as a family

Click on the live blog box below to replay the discussion.

Tim Cestnick is managing director at WaterStreet Family Wealth Counsel and author of 101 Tax Secrets for Canadians. Read an excerpt here: Tax tips: Pay down mortgage or make RRSP contribution?

Posted via web from Toronto Real Estate News, Blog

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About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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