Is it almost always better to max out RRSP prior to TFSA contribution?
I understand some of you out there have made a killing on your TFSA accounts:
http://business.financialpost.com/perso ... =3d99-6730
but for a typical tax payer who make at least minimum wage, does it make sense to max out the RRSP contribution first, then use the refund to fund the TFSA account?
Also, because TFSA accounts are new, aren't most online brokerage TFSA accounts more limited than their RRSP counterparts?
======NOTE the advantages of a co-mingled Spousal RRSP: =======
I forgot to mention that for those thinking of opening RRSP's or have them and are married or will be getting married, consider opening Spousal RRSP's instead as there is flexibility trying to adjust portfolio balances depending on whose portfolio is growing faster and predicted income at retirement.
There's the 3 year attribution rule people should be aware about though.
Annuitant - person opening the Spousal RSP account and who will draw on the amount upon reaching retirement age.
Contributor - spouse of the annuitant and who can claim the deductions on the tax return
The great thing about this is either the annuitant or contributor can make contributions to the Spousal RRSP.
http://www.theglobeandmail.com/globe-in ... e17032098/
And the Spousal RRSP accounts have to be co-mingled so that the annuitant and contributor can make contributions to the same Spousal RRSP account:
http://canadianmoneyforum.com/showthrea ... SP-account
http://business.financialpost.com/perso ... =3d99-6730
but for a typical tax payer who make at least minimum wage, does it make sense to max out the RRSP contribution first, then use the refund to fund the TFSA account?
Also, because TFSA accounts are new, aren't most online brokerage TFSA accounts more limited than their RRSP counterparts?
======NOTE the advantages of a co-mingled Spousal RRSP: =======
I forgot to mention that for those thinking of opening RRSP's or have them and are married or will be getting married, consider opening Spousal RRSP's instead as there is flexibility trying to adjust portfolio balances depending on whose portfolio is growing faster and predicted income at retirement.
There's the 3 year attribution rule people should be aware about though.
Annuitant - person opening the Spousal RSP account and who will draw on the amount upon reaching retirement age.
Contributor - spouse of the annuitant and who can claim the deductions on the tax return
The great thing about this is either the annuitant or contributor can make contributions to the Spousal RRSP.
http://www.theglobeandmail.com/globe-in ... e17032098/
And the Spousal RRSP accounts have to be co-mingled so that the annuitant and contributor can make contributions to the same Spousal RRSP account:
http://canadianmoneyforum.com/showthrea ... SP-account