Happy New Year from all of us at Blackburn Davis Financial – we hope you had a restful time with family and friends! It’s that time of year again when we have to start planning for your 2016 goals, while helping you reduce your taxable income for last year.
This will serve as a friendly reminder of the contribution limits and cut-off dates for your RRSP and/or TFSA contributions if you had planned to make a contribution this year.
The cut-off date for your RRSP contributions to count toward reducing your income for 2015 is February 29th, 2016. This year’s contribution limit is 18% of your taxable income up to a maximum of $25,370, whichever is less. If you have unused contribution room from previous years, you may contribute more than the $25,370 maximum, but one needs to be careful not to over-contribute.
If you wanted to contribute to a TFSA for 2016 the limit is $5,500 for the year, unless you have not maxed out your contributions. The maximum one could have deposited into their account since 2009 is $46,500 as of 2016. Note that if you have redeemed from your TFSA account in 2015, you will not be able to re-contribute that amount until January 2016. You do not get a tax refund for deposits to this account, but all the growth is Tax-Free.
If you have any questions about these limits or your Notice of Assessment, please do not hesitate to discuss with either John Davis or Stephen MacDonald. If you are interested in making a contribution for this year, we would be more than happy to assist you. Please feel free to contact Cindy in our office at firstname.lastname@example.org or 780.490.4200 ext.103 to arrange an appointment.