RRSP Information The easiest way to find your RRSP deduction limit is to look it up on the Notice of Assessment that Canada Revenue Agency (CRA) sends back to you after you file your annual income tax return. For 2018, your RRSP contribution amount is based upon your carry forward amount from 2017, plus your current year’s contribution amount which is the lesser of $26,230 or 18% of your 2017 earned income. Tip: Designating your loved ones as beneficiaries You can simplify the transfer of funds to loved ones and save taxes by designating your spouse or dependent children or grandchildren as beneficiaries of your RRSP. RRIF Information A RRIF is very much like an RRSP in reverse. Like an RRSP, the assets in the RRIF continue to be tax sheltered until withdrawn. The latest date to convert your RRSP to a RRIF is December 31st of the year you turn 71. You have the opportunity to convert to a RRIF earlier than age 71 but in general, the longer you delay withdrawing from a RRIF, the more potential you create for greater growth. Withdrawal amounts: Canada Revenue Agency (CRA) requires that you take at least a minimum amount out of your RRIF each year; however, in any year you may withdraw more than the minimum amount if preferred.The minimum withdrawal amount is set on January 1st each year and is calculated based on 1) your age and 2) the market value of the account as of December 31st of the previous year.
*To access the newly updated RRIF schedule outlined by the CRA, click here. Tip: Designating your loved ones as beneficiaries You can simplify the transfer of funds to loved ones and save taxes by designating your spouse or dependent children or grandchildren as beneficiaries of your RRIF. Tip: Set aside funds for taxes RRIF withdrawals are considered taxable income. If you only withdraw the minimum amount, no taxes are withheld at source. As such, you should budget for taxes owing on this amount (actual amount determined based on your annual tax filing). TFSA Information Starting in 2009, TFSA contribution room accumulates every year; as long as you were the age of majority (18 years old in 2009).The annual dollar limit for 2009, 2010, 2011 and 2012 was $5,000. The annual dollar limit for 2013 and 2014 was $5,500. The annual dollar limit for 2015 was $10,000. The annual dollar limit for 2016 and 2017 was $5,500. The annual dollar limit for 2018 is $5,500. The maximum amount you could have contributed into a TFSA (if age of majority in 2009) is $57,500. RESP Information You may contribute a lifetime maximum of $50,000 per beneficiary. The Government of Canada pays a grant of 20% of annual contributions to a maximum of $500 per beneficiary~ which is a $2,500 annual contribution per child.