The New Year is a great time for implementing resolutions that relate to your physical, mental and financial health.
Below are some things you should be thinking about in January:
- Contributing to your TFSA
- The aggregate total for an individual over 18 years of age in 2009 is $63,500.
- The Federal Government has set a maximum contribution limit of $6,000 for 2019. Avoid over-contribution penalties by checking your accumulated maximum. The easiest way to do this is to access the automated number for Canada Revenue: 1-800-959-8281. You will need to have your Social Insurance Number (SIN) ready.
- Contribute early and speak with your Financial Advisor to determine the most suitable investments for your TFSA contributions.
- Contributing to your RSP
- There are 2 different ways to determine your RSP deduction limit:
- Refer to your 2017 Notice of Assessment to obtain your RSP deduction limit; or
- Call the Canada Revenue Agency at 1-800-959-8281. You will need to have your SIN and the information from your 2017 Income Tax Return available.
- The deadline to contribute for your 2018 tax year is March 1, 2019.
- Please note that investments that generate capital gains income will be taxed more heavily upon withdrawal.
- Your Financial Advisor can help you determine the most suitable investment for your contribution.
- There are 2 different ways to determine your RSP deduction limit:
- Are you eligible for OAS or CPP soon?
- If you are considering deferring either of these payments to a later date, be cognizant of the reduction in the amount you will receive.
- You can obtain a Statement of Pensionable Earnings by contacting Service Canada at 1-800-277-9914.
The deadline to file your income tax is April 30, 2019. If you have a balance owing and you file late, the penalty is an immediate 5% of the amount owing and 1% per month thereafter.
A Financial Advisor can help you understand your options and clarify any questions or concerns you may have. Feel free to contact us today, we look forward to hearing from you!