When you win the $7000 , be sure and come and see me
You could max out your TFSA.
A TFSA offers tax-free growth on investments, providing a flexible and versatile savings tool. The annual TFSA contribution room limit has been raised to $7,000 for 2024 which you could win!
Important dates:
Start date: February 5, 2024, at 2:00 p.m. ET
End date: March 28, 2024, at 5:00 p.m. ET
https://www.advisor.ca/tax/tax-news/inflation-to-trigger-another-rise-in-tfsa-limit/
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The annual TFSA dollar limit is fixed at a base amount of $5,000, indexed to inflation for each year after 2009, and rounded to the nearest $500. According to Provost, the underlying TFSA dollar limit by indexation for 2024 is $6,858.85. That underlying limit is then rounded to the closest $500 increment, or $7,000.
That means the total contribution room available in 2024 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is set to be $95,000, up from $88,000 this year."
Well, the headline reads like there is an increase. but it's a release, and with no increase, now let's go save in peace
"The TFSA contribution limit for 2022 has been officially released. That limit is $6,000, matching the amount set from 2019 to 2021.
With this TFSA dollar limit announcement, the total contribution room available in 2022 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $81,500. " .......
https://www.advisor.ca/tax/tax-news/tfsa-limit-for-2022-released/
"More than half of Canadians over the age of 50 don’t have a retirement savings plan. Why don’t more employees save? Perhaps they don’t see the benefit. Maybe they feel retirement is too far down the line. Or maybe they feel they can’t afford it.
There is so many options to consider for a companies Group Plan , logistically we need to focus on one to start.
So lets look at Mackenzie as an example of a great portfolio management company that has a good back office and materials to help streamline setting up and taking care of a companies group plan.
There is some great tools to better understand Retirement Planning Options at this link
https://www.mackenzieinvestments.com/en/solutions/retirement
Then there is the forms to get, scroll down at the next link
Will need the Sponsor Application and each member will need a application , TFSA and RSP options. There is a defined pension option as well. For many that might not be a good idea, worth a discussion.
https://www.mackenzieinvestments.com/en/institute/tools-and-resources/applications-and-forms
That should get any one started, contact us to setup the account as the employer or as an employee
https://www.ratehub.ca/investing/rrsp-rules
There is a maximum age for RRSPs. When Canadians reach the age of 71 they must close down their RRSPs at the end of the calendar year. Those who have RRSPs have three options when they reach 71. They can:
You can not invest directly into a RIF, it has to flow through an RSP. So if your older than 71, you can not contribute to a RSP and so you can not shelter money into a RIF either.
One can invest into a TFSA at these ages though.
For some tax tips for 2020
https://improvingfutures.ning.com/blog/tax-reminders-for-2020-taxes
When Can taxes be filed this year ?
The EFILE program is now closed for the electronic filing of your clients’ initial and amended T1 personal income tax and benefit returns.
EFILE and ReFILE services will re-open on Monday, February 22, 2021.
NEW CLIENT ONBOARDING FOR TAXES
Year-end planning for RRSPs and TFSAs (December 2017)
For most Canadians, registered retirement savings plans (RRSPs) don’t become top of mind until near the end of February, as the annual contribution deadline approaches. When it comes to tax-free savings accounts (TFSAs), most Canadians are aware that there is no contribution deadline for such plans, so that contributions can be made at any time. Consequently, neither RRSPs nor TFSAs tend to be a priority when it comes to year-end tax planning.
Notwithstanding those facts, there are considerations which apply to both RRSPs and TFSAs in relation to the approach of the end of calendar year. Failing to take those considerations into account can mean the permanent loss of contribution room, a loss of flexibility when it comes to making withdrawals, or having to pay more tax than required when funds are withdrawn. Some of those considerations are outlined below.
While most RRSP contributions, in order to be deducted on the return for 2017, can be made anytime up to and including March 1, 2018, there is one important exception to that rule.
Every Canadian who has an RRSP must collapse that plan by the end of the year in which he or she turns 71 years of age – usually by converting the RRSP into a registered retirement income fund (RRIF) or by purchasing an annuity. An individual who turns 71 during the year is still entitled to make a final RRSP contribution for that year, assuming that he or she has sufficient contribution room. However, in such cases, the 60-day window for contributions after December 31st is not available. Any RRSP contribution to be made by a person who turns 71 during the year must be made by December 31st of that year.
Under Canadian tax rules, a taxpayer can make a contribution to a registered retirement savings plans (RRSP) in his or her spouse’s name and claim the deduction for the contribution on his or her own return. When the funds are withdrawn by the spouse, the amounts are taxed as the spouse’s income, at a (presumably) lower tax rate. However, the benefit of having withdrawals taxed in the hands of the spouse is available only where the withdrawal takes place no sooner than the end of the second calendar year following the year in which the contribution is made. Therefore, where a contribution to a spousal RRSP is made in December of 2017, the contributor can claim a deduction for that contribution on his or her return for 2017. The spouse can then withdraw that amount as early as January 1, 2020 and have it taxed in his or her own hands. If the contribution isn’t made until January or February of 2018, the contributor can still claim a deduction for it on the 2017 tax return, but the amount won’t be eligible to be taxed in the spouse’s hands on withdrawal until January 1, 2021. It’s an especially important consideration for couples who are approaching retirement who may plan on withdrawing funds in the relatively new future. Even where that’s not the situation, making the contribution before the end of the calendar year will ensure maximum flexibility should an unanticipated withdrawal become necessary.
Each Canadian aged 18 and over can make an annual contribution to a Tax-Free Savings Account (TFSA) – the maximum contribution for 2017 is $5,500. As well, where an amount previously contributed to a TFSA is withdrawn from the plan, that withdrawn amount can be re-contributed, but not until the year following the year of withdrawal.
Consequently, it makes sense, where a TFSA withdrawal is planned within the next few months, perhaps to pay for a winter vacation or to make an RRSP contribution, to make that withdrawal before the end of the calendar year. A taxpayer who withdraws funds from his or her TFSA before December 31st, 2017 will have the amount withdrawn added to his or her TFSA contribution limit for 2018, which means it can be re-contributed as early as January 1, 2018. If the same taxpayer waits until January of 2018 to make the withdrawal, he or she won’t be eligible to replace the funds withdrawn until 2019.
