Innovative new collaboration enables retirement savings contributions into the tax filing process
TORONTO, Jan. 23, 2019 /CNW/ - Wealthsimple, the company behind Canada's leading digital investing service, and TurboTax, the leading online tax filing service, have teamed up to help Canadians improve their financial decisions during tax season. The partnership brings greater clarity to how Canadians can save for their future through tax deferred retirement accounts, by showing how contributing to a low-cost retirement account could lower their tax bill today, while helping to save for the future.
With this partnership, the TurboTax product can be enabled for Canadians to open, fund, and compare Registered Retirement Savings Plan (RRSP) contributions while filing their taxes — all in just a few clicks. When Canadians are preparing their tax returns with TurboTax, they can now use the built-in "RRSP Optimizer" to see the impact RRSP contributions of different amounts would have on their taxable income and tax refund. Then, in a few simple steps, they'll be able to open, fund, or transfer an RRSP with Wealthsimple.
"This is TurboTax Canada's first partnership of its kind, and we are really excited about how it addresses a major taxpayer need. There were over five million Canadians who filed using TurboTax last year, but only 30% of online customers contributed to an RRSP. By combining TurboTax's ability to optimize tax payers' returns with RRSP contributions and with the investment optimization of Wealthsimple, our goal is to help Canadians achieve financial freedom in a way that we could never do on our own. It's safe to say, we are really excited," said Matt Lisowski, General Manager of TurboTax Canada.
Canadians contribute to an RRSP with pre-tax income — meaning they can subtract contributions from their income and potentially lower their tax bill. Money in an RRSP grows tax-free until retirement, and can be withdrawn early to buy a house or pay for education.
"Tax time is such a powerful point in the year for making smart financial decisions, both by making sure we're benefiting from the tax incentives to save that many Canadians miss out on, and by putting plans in place to save and invest for the long term," said Mike Katchen, CEO and co-founder, Wealthsimple. "We're excited to work with TurboTax to help Canadians make good financial decisions and bring simplicity to their finances."
Wealthsimple makes smart, sophisticated investing available to everyone with low fees, personalized portfolios, and unlimited access to experienced advisors. Its RRSPs include contribution tracking, so investors never have to worry about exceeding their limit. Over 100,000 Canadians have invested more than $3 billion with Wealthsimple.
Wealthsimple is a financial company that provides financial advice and services that are accessible, affordable, and human. Wealthsimple provides services in the U.S., the U.K., and Canada. The company was founded by a team of financial experts and technology entrepreneurs, and is backed by the Power Financial group of companies. Power Financial Corporation (TSX: PWF) is a diversified management and holding company that has interests, directly or indirectly, in companies in the financial services sector in Canada, the United States and Europe. To learn more, visit www.wealthsimple.com.
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