Should I contribute to my TFSA when I’m 68? + MORE Mar 17th

Not sure how to make a retirement plan? Read on…
Latest News
 freedom 55

Planning can help you make sure your retirement savings will last Jun 16th

There are steps you can take to make sure you don’t outlive your retirement savings, writes Ellen Roseman..... More »

CPP Fund grows to $366.6B at end of June Aug 11th

Canada Pension Plan Investment Board says its main fund grew to $366.6 billion of net assets at the end of June, up $10.5 billion from the end of March..... More »
 retirement savings

When It Comes to Retirement, I'm With Cicero Jan 13th

The great Roman orator thought aging and retiring free us from destructive ambition and competition..... More »
 cpp

Ladies, start saving 20 per cent for retirement Apr 28th

Women can unlock their financial potential by growing their financial confidence..... More »
Should I contribute to my TFSA when I’m 68?iStock
Q. I am 68 years old and already retired. Is there any point in contributing to a TFSA?
– Michelle
A. Any point? Why yes. There are lots and lots of points. I’ll make a few of them here.
The Tax-Free Savings Account is a great vehicle to reduce your taxes whatever your age. You’re already retired, so you’re not saving for that phase of your life. But you may have assets that could benefit from the tax shelter that the TFSA provides.
Money that you withdraw from an RRSP or a RRIF is taxed as income. But TFSA contributions are made with after-tax income, so you don’t pay a second time when you pull the money out. This means that whatever you draw from the TFSA will not impact “income-tested” benefits like Old Age Security or the Guaranteed Income Supplement.

Related: Should we tap the RRSP and feed the TFSA?

Remember, too, that you can’t contribute to an RRSP after age 71 and you’ll have to start withdrawing money from your RRIF, according to the amounts the government mandates…

Continue Reading On moneysense.ca »

When to watch out for OAS clawbacksBeware of the clawback!(Shutterstock)
Q: I have been trying to find out how much extra income a person can earn without having to report the income while drawing OAS and CPP.
I have tried looking this up online, but every site I have been to wants to charge me just to get the answer or does not answer my question and ends up talking about other things.
I just need to know the limit they are allowed to earn before they need to report it.
—Marcella
A: By default, Marcella, you should assume that most income sources are taxable and need to be reported on your tax return. There are a few exceptions, like GST/HST credits, Canada child benefits, lottery winnings, gifts, inheritances, post-secondary scholarships for full-time students, and Tax Free Savings Account (TFSA) withdrawals.
Ask a Planner: Leave your question for Jason Heath »
There are also amounts that may end up being tax-free, like if your income is low, or if you have lots of tax credits, or on the sale of certain types of assets, like a business or farm…

Continue Reading On moneysense.ca »

Share

PinIt
Compare insurance quotes through Kanetix.ca - save time and money!