Nice!
We have a TFSA program , Tax Free Savings Account , which is a great boon to anyone who understands something about the markets .
You can only put in $5500/year but it is cumulative , any profits in that account can be withdrawn tax free . cra-arc.gc.ca
That looks very similar to our ROTH IRAs for low to moderate income folks.
rothira.com
Fortunately, I've been putting the max into my ROTH every year since I left HP 19 yrs ago....
AND I used the two bear markets to CONVERT some regular IRA funds to ROTH when the markets were way, way down and so was my income (so low tax) so the recovery came to me tax free.
If your earned income for the year is less than the contribution limit (in 2016, $5,500 for those under 50), you can only contribute up to your earned income. In other words, if your earned income is $3,000, you can only contribute up to $3,000.
Income Limits and Tax Filing Status | 2016 Roth IRA Income and Contribution Limits | | Filing Status | Income Limit1 | Contribution Limit | | Married filing jointly | Less than $184,000 | $5,500 | | $184,000 to $193,999 | Begin to phase out | | $194,000 or more | Ineligible for a direct Roth IRA (learn more about a “Backdoor Roth IRA”) | | Married filing separately3 | $0 | $5,500 | | $1 to $9,999 | Begin to phase out | | Greater than $10,000 | Ineligible for a Roth IRA | | Single | Less than $117,000 | $5,500 | | $117,000 to $131,999 | Begin to phase out | | $132,000 or More | Ineligible for a direct Roth IRA (learn more about a “Backdoor Roth IRA”) |
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