Staying on top of the rules and deadlines for your registered plans, such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) can help you maximize the considerable benefits they offer. So, here are the rules to keep in mind for 2019:
RRSP contribution limit.
The maximum RRSP contribution limit for the 2018 tax year is $26,230 or 18 per cent of your pre-tax earned income from the previous year. Keep in mind that any unused contribution room carries over to future years, so your individual amount may differ.
TFSA contribution limit.
The TFSA contribution room limit for 2019 is unchanged at $5,500. The actual amount which can be contributed by an individual includes both the current year limit and any carryover of re-contribution amounts from previous taxation years. Keeping track of TFSA contribution room can be complicated, especially if you have made withdrawals from your TFSA in the past.
The deadline for RRSP contributions for the 2018 tax year is March 1, 2019.
There is no deadline for TFSA contributions. You can contribute to your plan anytime.
You can find out your individual limits through the Canada Revenue Agency’s (CRA) MyAccount service.
Larry Kleinmintz, R.H.U., T.O.T., M.D.R.T.
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