Many of us start the New Year with ambition. Ambition towards new diets, new fitness regimes, good habits, and so on. If your financial wellbeing has not made the list, give it some thought! Knowing what savings and expenditures you need to work into your annual finances will help ensure that you do not over extend yourself and that you achieve your goals.
When preparing your financial calendar, remember these key dates and figures:
- 2019 RRSP contribution deadline is March 2, 2020.
- 2019 RRSP contribution limit is 18% of 2018’s income, up to $26,500 max.
- 2020 TFSA limit remains unchanged at $6000.
- For those who have not started a TFSA account, the cumulative maximum is $69,500.
- 2020 RRSP contribution maximum is $27,230.
- Your 2019 salary must equal or exceed $151,278 to maximize your contribution room.
- 2021 RRSP contribution maximum is $27,830.
- Your 2020 salary must equal or exceed $154,611 to maximize your contribution room.
- Your past TFSA and RRSP contribution room can be found by logging in to your CRA account.
While we’re at it, let’s not forget about our kids. RESPs continue to be a great vehicle for tax-efficient education savings. The annual contribution to maximize the government grant is $2500/child.
If tackling your financial health made your New Year’s resolution list, we at Zavitz Insurance & Wealth are here to help. We can build your plan and provide the long-term strategy so that you can feel in control of your financial future. Contact us anytime to get the process started!