January 1st of each year often brings expectations of new things to come and the hope of new beginnings. 2021 is no different, though with some added variables such as masks and hand sanitizer. This new year also brings financial changes, such as new TFSA and RRSP limits and deadlines. Below are financial contribution limits and dates to remember for this year.
Things to Remember:
- TFSA – If you are over 18 years old in 2021, as of January 1st you get an additional $6,000 of contribution room. As well, any unused room AND any money taken out of your TFSA in the previous calendar year can be reinvested into your TFSA. If you have been eligible for the TFSA since its inception and have never contributed, your available contribution room is $75,500.
- RRSP – Contributions made to your RRSP account in the first 60 days of 2021 (March 1, 2021) can be applied to your 2020 tax return. The 2020 RRSP contribution limit is $27,230.
- RDSP – January 1st means the new calendar year grant and bond money is eligible for you or a loved one who qualifies.
- RESP – January 1st means the new calendar year grant money is eligible for your children’s education. $2,500 of contribution provides a minimum 20% grant ($500). There may also be past year catch-up available if you have not maximized your child’s contributions in previous years. This grant is no longer available the year your child will turn 18 years of age.
Feel free to reach out if you have any questions. Looking forward for what is to come in 2021.
Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting edge technology to maximize planning efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at www.connectwealth.ca
