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Registered Education Savings Plan – RESP
A registered education savings plan (RESP) is a contract between an individual and a person or organization. Under the contract, the subscriber names one or more beneficiaries and agrees to make contributions for them, and the promoter agrees to pay educational assistance payments (EAPs) to the beneficiaries.
Registered Retirement Savings Plan – RRSP
An RRSP is a retirement savings plan that you establish and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.
Tax-Free Savings Account – TFSA
The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute upto the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.
Home Buyers’ Plan – HBP
The Home Buyers’ Plan (HBP) is a program that allows you to withdraw funds from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. You can withdraw up to $35,000 in a calendar year.
Canada Pension Plan – CPP
The Canada Pension Plan (CPP) is a monthly taxable benefit that replaces part of your income in retirement. Once you qualify, you need to apply. Once approved, you will receive this government pension for the remainder of your life. The amount you will receive is based on your average earnings for the years you worked, your contributions to the CPP and the age you wish to start receiving your CPP pension. Tha maximum CPP monthly amount for 2019 is $1,154.58.
Old Age Security – OAS
OAS pension is a monthly payment you can get if you are 65 and older. The amount is determined by how long you have lived in Canada after the age of 18. It is considered taxable and is subject to a recovery tax (clawback) if your individual net annual income is higher than the net world income threshold set each year ($77,580 for 2019).