Wealthsimple and TurboTax have announced a partnership that aims to help Canadians make better long-term financial decisions while filing their taxes. The partnership creates an opportunity for Canadians to make contributions to a Registered Retirement Savings Plan (RRSP) during the tax filing process within the TurboTax platform.
TurboTax has introduced a new feature, the “RRSP Optimizer,” enabling taxpayers to see how different RRSP contributions would affect their tax refund. After comparing different contributions and the potential impact, Canadians can easily open an RRSP with Wealthsimple.
When Canadians contribute to an RRSP they are not only building tax-free savings for retirement but potentially lowering their tax bill by subtracting RRSP contributions directly from their pre-tax income.
“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, Wealthsimple’s CEO and co-founder. “We’re excited to work with TurboTax to help Canadians make good financial decisions and bring simplicity to their finances.”
Both organizations are excited about the partnership, and what it means for increasing awareness and ease of financial saving for Canadians.
“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,” said TurboTax Canada General Manager, Matt Lisowski. “By combining TurboTax’s ability to optimize taxpayers’ 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.”