TFSA account (Tax Free Account) RRSP account, which one better for investment? Which save more tax?
They are totally different things. So RRSP. And actually it's for the high income people, so, e.g. you make $200000 a year, definitely unit RRSP to deduct your income tax. But it's not a tax free It is a tool to make you have a choice to save some tax, to pay less tax, but eventually you still need to pay the tax anytime. When you are withdrawing money from the RRSP account, you need report income tax for that as part of your income.
So it means if you have high income right now and you need that and to save that tax for later, later when you do have the kind of income anymore, e.g. after you repair and then you can withdraw money from the RSP account, and because you have no more other incomes, and then whatever you withdraw from the RRSP, and e.g., you withdraw $50000. It's not that kind of high level tax level anymore.
So, e.g., $200000 income, you need to pay around 50% as income tax by the four $50000 only later after you retired. You withdraw every year. Maybe you only pay a lead and income tax, or maybe you don't pay any income tax. So r RSP is a tool for high income people.
And to save or to deduct, to pay less tax for TFSA is totally different. It's really free. It's a tax free You don't need to pay tax, okay? And remember, the money you put in the TFSA account, you pay tax already, ok e.g. you made $200000 and you pay tax 1st. And then you still have $100000.
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