Looking Forward to 2016
Happy New Year!...Hope you and your family enjoyed a nice break over the holidays and are all set for the New Year. Now that 2016 is upon us, we would like to share some important information regarding new deadlines and contribution limits to take advantage of. Also, we wanted to highlight some of the areas we are particularly interested in focusing on for the year ahead.
TFSAs The Liberal Government has stayed true to its word and has lowered the TFSA contribution limit for 2016 back to its previous $5,500. It is important to note that the $10,000 contribution limit from 2015 still stands, so if you missed making a full deposit last year, it can still be made up. Because, there is no deadline for making a TFSA contribution, anyone over age 18 and resident in Canada since at least 2009, may be eligible to contribute up to $46,500 to a TFSA if you have never previously contributed. If you are unsure about calculating your own contribution limit, we can help. RRSPs The maximum RRSP contribution limit for 2016 is 18% of earned income, to a maximum of $25,370. If you have not maximized your RRSP contribution limit for the years 1991-2015, your unused contribution room has been carried forward. Therefore, your personal RRSP contribution limit for 2016 may be more. 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 2015 is Monday, February 29, 2016. If you need to make a contribution please let us know before the deadline. RESPs RESP contribution limits remain unchanged at $2,500 for 2016, 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 contributions from previous years have been missed, you are able to make them up, subject to a $5,000 maximum annual contribution. 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. In Our Office In 2016, portfolio reviews will, as always, remain a key focus. Recently, an increasing number of mutual fund companies have introduced lower fee investment options, so meeting with us is essential to ensure you are taking full advantage of them. This year we are also hoping to focus more on all aspects of your financial plan. In addition to ensuring your investments are appropriate, we also intend to focus on retirement plans, retirement income plans, taxation, estate planning considerations, and a review of your life insurance coverage to make sure everything is up to date and there are no areas that are being overlooked. We are looking forward to a bright year ahead and hope to connect with you for any financial advice you may need. Thank you, Andrew & Peter