Leading digital investing firm teams up with top online tax-filing service to provide a useful optimization tool
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Wealthsimple has teamed up with TurboTax, the leading online tax-filing service, to help Canadians make better financial decisions during tax season.
Under the partnership, users of the TurboTax product may be enabled to open, fund, and compare RRSP contributions while filing their taxes. With the built-in RRSP Optimizer, Canadians preparing their tax returns can see how different amounts of RRSP contributions would impact their taxable income and tax refund. From there, they can follow a few simple steps 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,” said TurboTax Canada General Manager Matt Lisowski. “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,” he added.
Because RRSP contributions are made from pre-tax income, Canadians can subtract the contributions from their income and potentially decrease their tax bill. Money in an RRSP grows tax-free until retirement, and can be withdrawn early for house purchases or to pay for education. RRSPs on the Wealthsimple platform also include contribution tracking, which lets investors avoid exceeding their contribution limit.
“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 Wealthsimple CEO and co-founder Mike Katchen. “We’re excited to work with TurboTax to help Canadians make good financial decisions and bring simplicity to their finances.”
