# Can I make my RRSP contribution online through TD Easyweb?



## mcu (Dec 6, 2009)

Dumb question guys, can I make my contribution online through Easyweb or must I go in the branch? IF I can just do a transfer of funds from one account to the other, how do I prove to the government that I made a contribution?

Also I heard that income splitting is not real advantageous in the past couple of years because of some new rules. Is this true?


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## CadMan (Apr 16, 2010)

Yes, I just did this actually. I assume they will mail you the tax receipt.


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## uptoolate (Oct 9, 2011)

Yes you can transfer to your RRSP account online. You can actually then print out the tax receipt from EasyWeb.


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## mcu (Dec 6, 2009)

any benefits to doing a spousal rrsp contribution instead of to your own? Is TFSA better idea for someone with about 80k in combined salary?


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## Soils4Peace (Mar 14, 2010)

mcu said:


> any benefits to doing a spousal rrsp contribution instead of to your own? Is TFSA better idea for someone with about 80k in combined salary?


1. It depends mainly on the marginal tax rate of the two people when the money is withdrawn from the RRSP.
2. Yes.


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## mcu (Dec 6, 2009)

how is TFSA better? I think I have about 6-7k in taxes and thought if I make a 10k contribution to my RRSP it would save me at least 4k off the bat. TFSA would not save me anything but would let me grow tax free one day


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## Eclectic12 (Oct 20, 2010)

mcu said:


> how is TFSA better?
> 
> I think I have about 6-7k in taxes and thought if I make a 10k contribution to my RRSP it would save me at least 4k off the bat.
> 
> TFSA would not save me anything but would let me grow tax free one day


The tax refund is true but is only part of the picture. Bear in mind that for the RRSP - taxes are refunded today but will be assessed in the future, when the money is withdrawn. 

So a key factor is the tax rates when the RRSP contribution is made versus when it is withdrawn. If one is taxed at 20% when the RRSP contribution is made and will have retirement income that is taxed at 43% - then the "benefit" is the tax free compounding. This could be wiped out by the higher tax rate.

A second factor is the OAS clawbacks. Eventually, minimum amounts have to be withdrawn, which is added to the individuals net income. If the total net income (i.e. pensions + investments + RRSP withdrawals) is enough to put one over the threshold, OAS is reduced. This also reduces the benefit of the RRSP.


The TFSA on the other hand, is funded by after-tax dollars, grows tax-free, is not taxed when withdrawn and does not add to net income to potentially trigger a clawback.



Now there may ways to deal this in different situations for the individual but if one is not aware of this and does not have the needed actions planned for - the results can be a lot different than expected. 

This is why some seniors today complain that they should have put less money into the RRSP and more into investments taxed at a better rate.


Cheers


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## CanadianCapitalist (Mar 31, 2009)

@OP: Your question is not clear to me. What is your source account? What is your target account? How are you contributing? i.e. are you contributing cash or in-kind assets?

Let's say you want to contribute cash from a TD chequing account to a TDW RRSP account. You can do this through EasyWeb. In you webbroker, set up a transfer from the chequing account to the RRSP account and you're done. IIRC, one of the screens will ask you to confirm that you are making a RRSP contribution. TDW will issue you with a RRSP contribution receipt.

If you want to contribute assets in-kind, you'll have to call it in.


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