RRSP Benefits: How They Can Help Now
*The numbers in this video are for Illustration purposes. Please check with your Accounting Professional for your exact personal return balances and amounts.
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 2020
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