How an RRSP Can Help in 2021

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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

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*These posts are for educational purposes only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please consult an appropriate professional regarding your particular circumstances. Some of the information contained herein might be from sources believed to be reliable, however, we cannot guarantee that it is accurate or complete. The views expressed are those of the authors and writers only. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. All other insurance products and related services are offered through Newton Financial Ltd.