It's a good practice to review limits for your registered accounts annually to know when certain deadlines are, what contribution limits to expect, even how much money you can expect from your registered accounts in retirement. Below are a few key tools you can use to keep yourself informed. We post these tools annually as they change to better educate and advise our clients on their saving and spending options.
This document is key to planning your money for the year, as well as planning for the future! It contains RSP and TFSA contribution limits, Government Pensions and Allowances, OAS Clawback information, RRIF Minimum Withdrawal calculations, Marginal Personal Tax Rates and so much more. Feel free to keep this document for your own reference for the year.
Of course, be sure to come back at the beginning of 2024 to get the newest Facts and Figures so you can stay informed!
2023 Wealth Planning Facts & Figures
RRIFs are just RRSPs that have matured once you hit 71 (or earlier, should you choose to "RRIF early"). Your RRSP is used to contribute towards your retirement, where the RRIF is meant to help FUND your retirement.
A minimum amount must be withdrawn annually from your RRIF starting the first year AFTER it has been opened. Your minimum annual payment is based on your age (as of January 1st in the year of the withdrawal) and is calculated as a percentage of your RRIF's value at the beginning of each year (January 1st of the year).
It's important to know your minimum amount so you can plan for your year's finances. Some clients take their payments monthly, some take them in a lump sum during the year. Others may take more than their minimum and be tax at the appropriate rates. Whatever your situation, you can use this sheet to make a rough estimate on your payments.
RRIF Payout Schedule
LIFs are offered by Canadian financial institutions and provide individuals with an investment vehicle for managing payouts from locked-in pension funds and other assets. Each year the amount you can withdraw from your Life Income Fund (LIF) will very depending on your age, the value of your plan at the beginning of the calendar year, and the provincial or federal pension legislation governing your plan.
LIF Withdrawal Schedule
While most Canadians are aware of the April 30th personal income tax filing deadline, there are other important tax deadlines that must be observed over the course of the year - especially if you want to take advantage of certain tax deductions and credits. This calendar summarizes several important dates on the tax calendar and offers some tips to help you with your overall wealth planning.
Personal Tax Calendar
The Biddle Johnston Wealth Management Team