What are the Roth 401(k) contribution limits?

July 7, 2024 No Comments

A: The current contribution limit for a designated Roth 401(k) account for the 2018 fiscal year is $18,500. In addition, account-holders over the age of 50 may make catch-up contributions of up to $6,000, for a potential total annual contribution of $24,500. Catch-up payments are

What are the advantages and disadvantages of getting a 403(b) vs. a Roth IRA?

July 7, 2024 No Comments

A: A 403(b) plan is a retirement account that is offered to public school employees and the personnel of non-profit organizations, as well as some ministers and hospital employees. The 403(b) plan is similar to a 401(k) retirement account. Employees who are eligible for a

What are the steps to applying for a Canada Pension Plan (CPP)?

July 7, 2024 No Comments

A: To apply for the Canada Pension Plan, complete the application online, or print it out and mail it to Service Canada. If you fill it out online, there are two steps to the process. First, complete your application online and submit it electronically. Then,

What are the best ways to use your 401(k) without a penalty?

July 7, 2024 No Comments

A: The best way to use your 401(k) retirement savings account is to take normal distributions after you reach retirement age. In this way, you avoid paying any unnecessary taxes and use your savings for anything you want. However, to use your 401(k) fund before

What are the differences between a Registered Retirement Savings Plan (RRSP) and a Registered Pension Plan (RPP)?

July 7, 2024 No Comments

A: Registered Retirement Savings Plans (RRSP) and Registered Pension Plans (RPP) are both retirement savings plans that are registered with the Canada Customs and Revenue Agency. RRSPs are individual retirement plans, while RPPs are plans established by companies to provide pensions to their employees. Contributions

What are the differences between a self-directed IRA and a traditional IRA?

July 7, 2024 No Comments

A: Individual retirement accounts are restricted savings accounts intended to provide a source of income for retirement. Contributions to IRAs are made by the individual account owner and, depending on the particular type of IRA, by the employer. The funds are held by a financial

What are the differences between an annuity derivation and perpetuity derivation of the time value of money?

July 7, 2024 No Comments

A: The differences between an annuity derivation and a perpetuity derivation of the time value of money is due to differences in time periods. Since the life of an annuity differs from the life of a perpetuity, an annuity uses a compounding interest rate to

What are the differences between Canada Pension Plans (CPP) and Social Security Benefits?

July 7, 2024 No Comments

A: On the surface, the U.S. Social Security system and the Canada Pension Plan have a lot in common. Both are publicly provided, mandatory old age pension systems that have the option of providing disability and survivor benefits in addition to retirement assistance. The most

Receiving Social Security benefits abroad

July 7, 2024 No Comments

A: If you are planning on retiring abroad, you may be concerned about forfeiting your Social Security retirement, disability or survivors’ benefits. However, because the United States has Social Security agreements with many nations throughout the world, this may not be the case. The Social

Should a Canadian citizen who lives and works in the U.S. continue to contribute to a RRSP account?

July 7, 2024 No Comments

A: No, a U.S. resident should not contribute to a RRSP account. RRSP contribution rules allow you to contribute a certain percentage of your earned income, but since your income is not from a Canadian source, you would not be eligible for any tax deductions

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