Registered accounts can be crucial for investors. These aren’t just ordinary savings or investment accounts – they offer something more enticing: tax advantages.
Given the variety of options available, it’s crucial for investors to understand the essence of each to strategize their investments effectively. Here’s a quick look at five of the most notable registered accounts.
RRSP (Registered Retirement Savings Plan)
A tax-deferred account designed for retirement savings, allowing contributions to reduce taxable income.
Spousal RRSPs
An account permitting higher earners to contribute for a spouse, facilitating income splitting in retirement.
LIRAs (Locked-In Retirement Accounts)
A tax-deferred retirement account for transferred company pension funds, with restricted withdrawals.
RESPs (Registered Education Savings Plans)
A tax-free growth account for education savings, where withdrawals are taxed to the student beneficiary.
TFSAs (Tax-Free Savings Accounts)
An account where contributions aren’t tax-deductible, but all growth and withdrawals are tax-free.
For more information on each of these great options, check out the video above.
