Preparing For 2014

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Happy new year! I hope you enjoyed a nice break over the holidays and are ready to jump into the new year.Now that we have entered into 2014, I wanted to share some important information regarding new contribution limits and deadlines for you to take advantage of.

TFSAs The TFSA contribution limit will remain at $5,500 for 2014. The annual contribution limit, which started at $5,000 when the TFSA was first introduced in 2009, is indexed to inflation but is rounded to the nearest $500, leaving the 2014 contribution limit the same as it was in 2013 due to low inflation over the past year. Of course, there is no deadline for making a TFSA contribution. If you have been over age 18 and resident in Canada since at least 2009, beginning January 1, 2014, you can contribute up to $31,000 to a TFSA if you haven’t previously contributed. Talk to us if you are unsure about calculating your own contribution limit. We can help.

RRSPs The maximum RRSP contribution limit for 2014 is $24,270. However, if you did not use all of your RRSP contribution limit for the years 1991-2013, you can carry forward the unused amount to 2014. Therefore, your RRSP contribution limit for 2014 may be more than $24,270. If you are unsure what your RRSP limit is check your notice of assessment from Canada Revenue Agency or call us for assistance. The RRSP deadline to contribute for tax year 2013 is Monday March 3, 2014. If you need to make a contribution let us know so we ensure you do so before the deadline.

RESPs RESP contribution limits remain unchanged at $2,500 for 2014, to attract the 20% Basic Canada Education Savings Grant (CESG). There is no real deadline as you have the whole year in which to contribute. However, if you have missed contributions from previous years you are able to make up these contributions from past years. Additional grants are available to lower income families. If you need any more information regarding your RESP limits or the grants available let us know and we will help.

We are looking forward to a bright year ahead and hope to connect with you for any financial advice you may need. Sincerely,

Andrew & Peter

#tfsa #retirementplanning #resp

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