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Glossary term
Foreign Withholding Tax
Tax another country withholds from dividends before paying you. The US withholds 15% on dividends from US stocks/ETFs — but US-listed ETFs held in an RRSP/RRIF are exempt under the Canada-US tax treaty. In a TFSA or non-registered account the withholding applies. Relevant to where you hold US-equity ETFs.
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TFSA
Canadian registered account where investments grow tax-free and withdrawals are tax-free. 2026 limit: $7,000/…
RRSP
Tax-deferred retirement account: contributions deduct from income, grow tax-free until withdrawal. 2026 limit…
FHSA
Hybrid TFSA+RRSP for first home purchase. $8,000/year limit, $40,000 lifetime. Contributions deduct from inco…
RESP
Tax-deferred education savings account. Government adds CESG (20% match up to $500/year, $7,200 lifetime). $5…
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