Quote:
Originally Posted by 4444
Another option is to reinvest your tax refund (more RRSP or TFSA as mentioned) and enjoy the power of compounding returns (reinvested dividends, reinvested capital gains) - HOWEVER, you should watch what you have in these accounts, capital gains are taxed favouribly (1/2 of the gain), dividends attract the dividend tax credit (favourable to be taxed), REIT distributions are taxed at the highest marginal rate so they are good RRSP candidates.
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I thought none of those matter in an rrsp account as the tax is triggered on the lump sum that you remove?
I know that US dividends in TFSA have withholding taxes compared to RRSP.