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Are You Eligible For a Tax Break?

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By Stas Bekman.

Published: 16 July 2006

Are You Eligible For a Tax Break?

Check those tax books and guidelines and may be even invest into a consultation with a tax expert. A little invested time and money may result in a nice check from the government.

Participate in a 401(k) or 403(b) plan, or the equivalents. This shrinks your taxes and saves you for the future.

Put as much as you can into tax-free IRA/Roth IRA/RRSP/other accounts. You get taxed less and the gain on the programs is tax-free, until you withdraw

Be creative and think of the ways you could fit your situation to various deductions and privileges. This is especially important if you have a family and children, as there are many more options that could give you more money back.

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A section 401(k) plan is a type of tax-qualified deferred compensation plan in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pre-tax basis.

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A 403(b) plan is a retirement plan for certain employees of public schools, tax-exempt organizations and ministers. Individual 403(b) accounts are established and maintained by eligible employees.

RRSPs and related plans
Information for annuitants, contributors, or beneficiaries of registered plans for retirement, buying or building a qualified home, or continuing education.

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If you are considering an RRSP, there are a few things you will need to know to get started.


 

 

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