How an RRSP Can Help in 2020

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RRSP Benefits Now

*based on 2019 tax percentages. 

An RRSP Contribution can generate an income after filing your taxes. The contribution can be deducted from your income.

In Ontario if someone makes 50,000/year in 2019
They will pay $8,733 in income tax.
From that they will have a take home income of $41,267

Let’s say a contribution of $5,000 is made towards an RRSP.

That gives a taxable income of $45,000

Income tax on a salary of $45,000 in Ontario is $7,152.

Remember, they would have already paid $8,733 of income tax throughout the year taken from their pay check.

If you subtract what actually should have been paid, $7,152, because of the RRSP contribution from what was paid, they would have a refund of $1,581.

Be sure to speak with a trusted, qualified financial advisor to make sure an RRSP is right for you.

We would love to hear from you if you have any questions.

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