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VelociBacon posted:Looks like HSBC is merging or being bought by RBC. I specifically moved from RBC to HSBC because of account security concerns, and also their wire department kept losing incoming wires. I don't really know where I'm going to go, TD is looking likely because I've heard they have high interac limits on request and a minimum balance fee waiver.
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Feb 9, 2023 01:17
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| # ? May 17, 2024 16:36 |
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i was starting my tax prep for 2022 and i just realized not only did i overcontribute to my rrsp (by a significant amount, 5 figures. i was stupid and made the same 'max out my contributions for the year' contribution to two separate rrsp accounts once in may and once in september) but i also already made my estimated 2023 max contribution earlier this week. i haven't technically overcontributed for 2023 yet because my employer offers a match and i could just stop contributing but now i'm very confused as to what my best course of action is. should i withdraw the most recent contribution while i'm still in the grace period? i don't plan on claiming it until the 2023 tax year (so next year) so i think i'm in the clear on paying taxes on it (could be wrong about this, i've never withdrawn from an rrsp. will the bank automatically withhold?). i know i'll need to file some sort of overcontribution form and pay a penalty. should i just get a tax accountant?
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Feb 16, 2023 21:14
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I would call CRA, explain the situation, and ask what to do. They’re very helpful. I made a lesser screwup in my RRSP a few years ago and only noticed last year when I couldn’t get my spreadsheet to reconcile. Was very easy to fix myself, though it didn’t involve withdrawing an over-contribution so it was easier.
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Feb 16, 2023 23:42
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And call them immediately. They are about to be extremely busy.
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Feb 17, 2023 03:24
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I suggest talking to a tax professional. The penalties on larger overcontribution amounts can get nasty since it's on a per month basis the funds sit in the account. Any decent accounting firm should be familiar with the best route to requesting the CRA to maybe waive things and possibly prep a T1OVP form since that one can be a bit tricky to do correctly.
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Feb 17, 2023 06:45
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Can’t you just carry forward the extra contributions? It looks like it’s on the Schedule 7. Just roll them forward until you use them up. Don’t skip the employer match. https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/5000-s7.html
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Feb 17, 2023 08:06
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Money Advice Needed: my wife and I want to buy a minivan. My car is paid off but I’ve been told that it’s time to trade it in. My wife owes ~$4600 on her car. Is it better to pay off the remaining balance on her car (.99%) or put that money towards the down payment on anew car?
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Feb 17, 2023 14:57
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It depends on the price and interest rate on the new car.
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Feb 17, 2023 16:12
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You've got a few variables here. Value of your car Value of your wifes car Loan interest rate Price of the new minivan APR (if financed) your new minivan Dealers LOVE loving with numbers. They're masters at it. They will happily give your more $$ for the trade, but generally it will be offset in the price/fees of the new vehicle. You will almost certainly be better served by selling your vehicles privately (even though the market is finally showing signs of stabilizing, it's still overpriced for used IMHO) and buying the new vehicle. But sometimes people take the hit of doing a trade and just getting it all done. When we bought our new Subaru years ago, the dealer offered me $1K less than what I could get for my trade privately based on my research with Kijiji. We had already made the deal on the new vehicle so I knew what the price was on that with no monkeying around. In that case I just went for the trade because the hassle of dealing with the mouthbreathers for potentially another $1K wasn't worth it for me.
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Feb 17, 2023 18:53
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yippee cahier posted:Can’t you just carry forward the extra contributions? It looks like it’s on the Schedule 7. Just roll them forward until you use them up. Don’t skip the employer match. Yeah there's a difference between RRSP contribution and RRSP deduction, definitely talk to a tax expert OP.
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Feb 17, 2023 23:25
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Does anyone know if there’s changes coming to TD E-Series. My TD advisor called me for the first time in 7 years and said it’s important to come down and talk about my investments.
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Feb 18, 2023 18:41
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DariusLikewise posted:Does anyone know if there’s changes coming to TD E-Series. My TD advisor called me for the first time in 7 years and said it’s important to come down and talk about my investments. Haven't heard anything, but that sounds like "get them in the door" talk.
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Feb 18, 2023 21:22
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DariusLikewise posted:Does anyone know if there’s changes coming to TD E-Series. My TD advisor called me for the first time in 7 years and said it’s important to come down and talk about my investments. If memory serves, they’ve discontinued the e-series mutual fund account. You need one of the TD Direct Investing accounts now to purchase.
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Feb 18, 2023 21:42
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Sounds like Macklem pouring a bit of cold water on the whole "rate pause" idea Bank of Canada might need to raise rates if companies keep raising prices, Macklem warns High inflation provides camouflage for rising prices, warns central bank governor https://www.cbc.ca/news/business/inflation-family-column-don-pittis-1.6750879
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Feb 23, 2023 00:22
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Anyone know if/when FHSA accounts will start being provided at banks?
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Mar 11, 2023 19:11
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Around late April/ early May is what I've heard but take that for a grain of salt. For someone who is eligible does the FHSA have better benefits compared to the RRSP home buyers plan?
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Mar 11, 2023 22:23
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Arabian Jesus posted:Around late April/ early May is what I've heard but take that for a grain of salt. For someone who is eligible does the FHSA have better benefits compared to the RRSP home buyers plan? FSHAs are a combination TFSA/RRSP for first home purchases: * Contributions to a FSHA are tax deductible (like an RRSP); * Withdrawals to purchase a qualifying home are non-taxable (like a TFSA, but restricted to the use of purchasing a home); * Contribution room increases each year by a set amount (like a TFSA), up to a maximum of $40,000 lifetime limit, although you will only earn contribution room and carry forward that room once you open an FSHA for the first time. * FHSAs have a maximum timeframe to be used of 14 years after first opening an FSHA, or turning 70 years old, or using an FSHA to purchase a home, whichever is earlier. * Funds in an FSHA can be transferred tax-free to another FSHA of the same person, or their RRSP or RRIF, on a tax-free basis and do not use up RRSP contribution room. * Otherwise, for all other withdrawals that are not used for a qualifying home purchase and do not go into an RRSP/RRIF/FSHA, such withdrawals are considered taxable income. Also, you do not reclaim FSHA contribution room for such withdrawals. * As the explainer in the Department of Finance backgrounder notes, the version of the bill that received Royal Assent now allows for FSHA and HBP to be used for the same qualifying home purchase. From what I could see of Canadian finance subreddits, the preference appears to be: FSHA > TFSA> RRSP, given that FSHAs only start accumulating contribution room after you open one, and they rollover into your RRSP whether you buy a home or not and don't consume RRSP contribution room when that happens. For more reading: Original guidance from the Department of Finance (with a disclaimer that the Royal Assent version changed things) CRA information for financial institutions including background information Bill C-32 - Royal Assent version
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Mar 11, 2023 23:47
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AegisP posted:FSHAs are a combination TFSA/RRSP for first home purchases: If I just bought a place, can I still open one of these and use the tax break to pay down the mortgage, or just funnel more into an RRSP?
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Mar 12, 2023 00:01
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The NPC posted:If I just bought a place, can I still open one of these and use the tax break to pay down the mortgage, or just funnel more into an RRSP? No. The requirements in order to open an FSHA from a financial institution requires that an individual be a qualifying individual. This is defined as: quote:qualifying individual, at a particular time, means an individual who
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Mar 12, 2023 00:08
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AegisP posted:No. Thanks. Those actually seem like reasonable restrictions. Now if I only had $ to save away in the first place...
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Mar 12, 2023 00:18
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AegisP posted:From what I could see of Canadian finance subreddits, the preference appears to be: FSHA > TFSA> RRSP, given that FSHAs only start accumulating contribution room after you open one, and they rollover into your RRSP whether you buy a home or not and don't consume RRSP contribution room when that happens. I get opening a FSHA pronto to accumulate room (well sorta, seems kinda dumb and opens banks/brokerages to charging inactivity fees but whatever). I don't get strictly prioritizing contribution over TFSA. Seems like it should be grouped with RRSP? Like 1. Decide whether to prioritize FSHA/RRSP or TFSA (the age old debate). 2. If you decide FSHA/RRSP, do FSHA first. I don't mean to shadowbox so feel free to shrug and point me at those subreddits  Also I'm only quoting one tiny quibble from a pile of good info, thanks for all that.
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Mar 12, 2023 03:26
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pokeyman posted:I get opening a FSHA pronto to accumulate room (well sorta, seems kinda dumb and opens banks/brokerages to charging inactivity fees but whatever). I don't get strictly prioritizing contribution over TFSA. Seems like it should be grouped with RRSP? Like Yea, that's the most "up to personal circumstances" aspect of the now three registered accounts people have to juggle. I agree with you that FSHA should trump RRSP in a comparison between the two (given that it's effectively extra contribution room not dependent on income), assuming you can be bothered to open one and the banks don't charge fees to maintain one or maintain one under a specific balance. Although, this becomes a complicated question in situations where your employer offers you an RRSP match, and probably shifts the other way. Otherwise, I think the arguments for filling up an FSHA first could be: if you are planning on purchasing a house in the next 15 years (which could be a long enough timeframe for even those people who might not want to in the next 5 but feel they'll be in a better position 10 years from now to consider it), then rather than contributing to a TFSA and then withdrawing for the house purchase, you can instead do the same thing with an FSHA but get a tax break for the contributions at the same time. Alternatively, it could just be an efficiency argument. People have had TFSAs and RRSPs for a while, and in many circumstances could likely have amassed a fair bit of contribution room which they can't fill in a single year. On the other hand, the FSHA is brand new and starts off at $8,000 max for the first year. It could simply be easier (and more fulfilling) to be able to meet that, rather than feel like you're chipping away at a mountain of contribution room you've amassed in the others. Edit: It is at this point that I realize I have been calling it an FSHA instead of an FHSA, and gently caress it, too many 4-letter registered plan abbreviations 
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Mar 12, 2023 15:49
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there's no downside to the fhsa if you are already maxing your rrsp and tfsa contributions, correct? worst case is you never buy a home and move it to your rrsp penalty free when it expires?
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Mar 12, 2023 19:34
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the talent deficit posted:there's no downside to the fhsa if you are already maxing your rrsp and tfsa contributions, correct? worst case is you never buy a home and move it to your rrsp penalty free when it expires? Correct. I suspect a lot of people will just use it for extra RRSP room rather than actually using it for a home purchase.
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Mar 12, 2023 19:57
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Thanks for the info! I wasn't sure if the new account would be tax deductible but that's good to hear
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Mar 14, 2023 15:00
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Can anyone advise on who the least-worst RDSP provider is? There's a list here: https://www.canada.ca/en/employment-social-development/programs/disability/savings/apply.html I understand many banks only allow one to buy GICs or their expensive in-house mutual funds with their RDSPs. TD allows their cheaper e-series maybe? I'll probably also open an RESP and an FHSA when those are a thing. I don't know what I don't know. Please enlighten me!
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Mar 18, 2023 05:15
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Me limited googling seems to imply you can open a self directed RDSP account and buy ETFs like a normal registered account (https://www.td.com/ca/en/investing/direct-investing/registered-accounts/rdsp). I’d open one of those and follow the usual investing advice in the op
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Mar 18, 2023 19:31
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TD Direct is my leader so far. Another twist is that I'm going to have to watch out for the US PFIC rules, so I went to make sure I'm getting at least QEFs.
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Mar 18, 2023 20:22
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I have no personal experience, but in helping a family member I read through a bunch of posts on https://www.canajunfinances.com/rdsp/ that were helpful. (Family member ultimately didn’t want self directed so I didn’t get to see any of it secondhand either.) I think that blog has some TD-specific posts too as that’s where they ended up.
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Mar 18, 2023 20:32
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oo thanks that's exactly the kind of dope I'm looking for
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Mar 18, 2023 20:49
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pokeyman posted:I have no personal experience, but in helping a family member I read through a bunch of posts on https://www.canajunfinances.com/rdsp/ that were helpful. (Family member ultimately didn’t want self directed so I didn’t get to see any of it secondhand either.) I think that blog has some TD-specific posts too as that’s where they ended up. Refuse to take any advice from a site that looks like this imo: 
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Mar 18, 2023 23:15
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Honestly, I am more likely to find Some Guy's lovely Personal Site more credible than The Motley Mutual Fund Marketer.
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Mar 19, 2023 00:03
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Get the self directed RDSP with TD and buy as much VGRO as you can afford.
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Mar 19, 2023 05:57
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I believe that National Bank Direct Brokerage offer self directed RDSPs with free ETF trades.
Honey Im Homme fucked around with this message at 15:06 on Mar 19, 2023 |
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Mar 19, 2023 14:55
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qhat posted:Get the self directed RDSP with TD and buy as much VGRO as you can afford. VGRO is almost certainly a PFIC.
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Mar 19, 2023 17:45
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tagesschau posted:VGRO is almost certainly a PFIC. What are the actual implications of this?
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Mar 19, 2023 19:27
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Oh! So it seems they do! My first look at National only showed their relatively-lousy mutual fund options. Anyone have thoughts about TD vs. National?
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Mar 19, 2023 22:00
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tagesschau posted:VGRO is almost certainly a PFIC. I don't mind if it's a PFIC as long as it's a QEF. The implication is that US tax filers can get hammered for holding PFICs and have to file a long and annoying form about them.
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Mar 19, 2023 22:01
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Ugh: "Where a United States person is a unitholder in a fund that holds other Vanguard funds in its portfolio, that person is an indirect investor in the lower-tier funds and is required to file a separate Form 8621 report for each of the lower-tier funds that constitutes a PFIC." Okay, maybe I'll just buy the USD version or Berkshire Hathaway or something...
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Mar 19, 2023 22:08
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qhat posted:What are the actual implications of this? One year, I got a handwritten note from my accountant attached to my return letting me know that not selling them could cause my U.S. tax prep costs to triple. I now don't own any PFICs outside my RRSP, which is about the only place you can have them that doesn't call Form 8621 into play. IRS posted:The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and the estimated burden for business taxpayers is approved under OMB control number 1545-0123. The estimated burden for all other taxpayers who file this form is shown below. That's per fund. tagesschau fucked around with this message at 22:20 on Mar 19, 2023 |
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Mar 19, 2023 22:15
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