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Glossary term
Spousal RRSP
Spousal RRSP — RRSP where you (higher-income spouse) contribute but your spouse is the annuitant (owner). Goal: equalize retirement income to minimize total household tax in retirement. 3-year attribution rule: if spouse withdraws within 3 years of your contribution, withdrawal is taxed back to you.
Related terms
RRSP over-contribution
CRA allows a $2,000 lifetime buffer above your RRSP room without penalty. Above $2,000 — 1% per-month penalty…
SIN
Social Insurance Number — a 9-digit number required to work legally in Canada and to open any registered acco…
Credit Score
A 300-900 numeric measure of creditworthiness tracked by two bureaus — Equifax and TransUnion. Newcomers star…
Tax Residency
Canada taxes by residency, not citizenship. A tax resident pays tax on worldwide income from the date of esta…
Tax Slips
Standardized forms that payers send to you and the CRA reporting your income. T4 — employment income; T5 — in…
ACB
Adjusted Cost Base — the tax cost of an investment: purchase price + commissions + reinvested distributions,…
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