Consider three incomes: $35 000, $65 000, and $130 000. Determine the maximum RRSP contribution and the
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Consider three incomes: $35 000, $65 000, and $130 000. Determine the maximum RRSP contribution and the tax benefit at each income level. What would be an equivalent TFSA contribution?
Next project these incomes over 30 years, increasing annually by 2%. Assume the person invests optimally in a) an RRSP; then b) a TFSA, and that either choice provides an annual return of 6%. Begin either choice with a zero initial balance.
Which investment decision would you recommend and why ?
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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