This time of year everyone is busy thinking about Christmas shopping, cookie baking and gathering with loved ones and we often overlook our finances.
Below are some topics to keep top of mind prior to year end to make the most of your investments and to enter the New Year strong!
TFSA
2024 annual TFSA contribution room is $7,000, if you haven't maxed out your TFSA to include 2024s TSFA contribution limit you should definitely consider doing so before year end, otherwise any unused contribution room will be carried forward
2025 annual contribution limit will be another $7,000 (lifetime limit will be $102,000) for eligible Canadians as of January 1st 2025
RRSP
The RRSP contribution deadline is March 3rd, 2025 in order for your contribution to count as 'first 60' and be applied to your 2024 tax return.
If you make contributions after this date, you will have to claim them as deductions on your 2025 tax return
RESP
Registered Educational Savings Plan has a lifetime limit of $50,000 per child
Grant room begins as of the child's year of birth
There is no annual contribution amount limit
Unclaimed CESG can carry forward up to one year at a time to a maximum of $1,000 per year
You have until December 31st 2024 to contribute to your RESP for the 2024 year (ensure to check with your institution as this date can differ based on each financial institutions policies)
CESG is a grant provided by the government when you contribute to your child's RESP
20% of your contribution is matched per year up to an annual maximum of $500
Example: Your contribute $2,500 to your child's RESP in 2024 you will receive $500 of CESG
CESG has a lifetime limit of $7,200
FHSA
Launched April 2023
Lifetime limit is $40,000
Annual contribution limit is $8,000 per calendar year
You can carry forward up to $8,000 of your unused annual contribution amount to use in a later year (subject to the lifetime contribution limit)
You have until December 31st 2024 to contribute to your FHSA to count towards your 2024 tax deduction (ensure to check with your institution as this date can differ based on each financial institutions policies)
First 60 doesn't apply to FHSA
It's always great to set financial goals especially when entering into the New Year! Whether you want to pay off a certain amount of your debt, increase your contributions, max out your TFSA or begin saving for your first home, this is a great time to start!
Contact us today to set your financial goals for the New Year and create a clear path to achieve those goals!
This document was prepared by Cannell Wealth Management. The opinions expressed in this document do not necessarily reflect the opinions of iA Private Wealth Inc. The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Contents copyright by the publishers. The information contained herein may not apply to all types of investors.
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