A managing director of tax and estate planning at CIBC Private Wealth, said in an interview with BNN Bloomberg recently that this vehicle combines many of the benefits of a Registered Retirement Savings Plan (RRSP) with those of a Tax-Free Savings Account (TFSA).
“So it’s better than an RRSP because with an RRSP, you get a deduction on the way in but eventually when you take it out in retirement you have to pay tax,” he said.
“This accomplishes both. You get a deduction on the way in and no tax on the way out, provided you buy that first home within a designated period.”
The will be available in April 2023. It allows homebuyers to annually deposit up to a certain tax-free, with a lifetime maximum.
If you have questions, we can help answer them.
Les Sohar, cell 905-616-3297
Chris Sohar, cell 905-617-6554