As February rolls around, so does income tax season. Whether this is a windfall or a woes season, there is always good information available to help with financial decision making. 

HSA accountant Glenn Sylvestre helps out with some sage advice around Registered Retirement Savings Plans and Tax-Free Savings Accounts. The biggest difference is the decision of when to endure the tax payment. Sylvestre explains that an individual's tax bracket now and at the time of retirement may have a bearing.

He explains, "Anything over $46,000 in income, you're taxed at a 32% level; anything over $90,000, you're at a 38.5% tax bracket. So buying an RRSP in those tax brackets will save you that percentage accordingly. You have to ask yourself when I retire, where is my income level going to be because, of course, an RRSP comes out as income and it's taxable. So if you are going to be in the same tax bracket when you retire, then maybe a TFSA is a better option for you. Any growth it has is tax-free on its way out."  Sylvestre clarifies that there may not be an immediate tax saving with the purchase of a TFSA, but the dividends on the other end won't increase payable income tax. "That's the difference: tax-free coming out or tax payable coming out."

One other difference of note in this year's return will affect post-secondary students. Sylvestre outlines, "With student credits, you get only federal credits with tuition. There's no books or lodging credits that you used to get, so it's basically 15% of your tuition that you get federally." Parents helping to fund students' education will be happy to know that those amounts can still be transferred to parents. 

March 1st is the deadline for contributing to an RRSP for the 2018 tax year.