Forgot to File Your Taxes Last Year? What You Need to Know Jun 7th
What is a line of credit and what is it best used for? We make it make sense + MORE Oct 10th
The best RRSP investments 2022 + MORE Oct 31st
Are single seniors unfairly penalized at tax time? Apr 17th
How to invest as a teenager in Canada + MORE Dec 5th
The best way to transfer RESP money to an RRSP
– moneysense.ca
Q: When transferring my unused RESP accumulated income into my RRSP, am I able to do it as is, i.e. bank stocks, or do I have to cash them in and transfer as cash?
—Johanna
A: If you end up with money in a Registered Education Savings Plan (RESP) that you can’t use for a child’s education, you can get back your original contributions tax-free.
The remaining Canada Education Savings Grant (CESG) money or Canada Learning Bond (CLB) money is repaid to the government, but that’s money you wouldn’t have had in the first place.
Ask a Planner: Leave your question for Jason Heath »
The excess accumulated income in an RESP is taxable upon withdrawal, plus a punitive 20% penalty tax. But as you have noted, Johanna, you can transfer up to $50,000 of this income to a Registered Retirement Savings Plan (RRSP) on a tax-deferred basis. This back-up option is one of the reasons I think an RESP far outshines other education savings options for children – like trust accounts – in addition to the 20%+ government grants…
The max you can contribute to your TFSA for 2018
– moneysense.ca
The TFSA limit determines how much you can deposit in your Tax-Free Savings Account each year.
The TFSA limit for 2018:
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YearTFSA Annual LimitTFSA Cumulative Limit
2009$5,000$5,000
2010$5,000$10,000
2011$5,000$15,000
2012$5,000$20,000
2013$5,500$25,500
2014$5,500$31,000
2015$10,000$41,000
2016$5,500$46,500
2017$5,500$52,000
2018$5,500$57,500
More about the annual TFSA limit:
Tax-Free Savings Accounts (TFSAs) were first introduced in Canada in 2009. Most Canadian financial institutions now offer them. A TFSA allows any Canadian over the age of 18 to save or invest money in a tax-free account. “Tax free” means that you don’t pay taxes on the money you make inside your TFSA…
Guaranteed Ways to Save More Money in the New Year
– ratesupermarket.ca
Over and over again, we keep hearing that Canadians just aren’t saving enough. According to reports, we owe too much, spend too much and don’t have a saving strategy in place to build a nest egg for retirement and emergencies.
So now that the expensive holiday season is over, what better time than the new year to put saving back on your radar? Presents and gift-giving are behind us, and now is the time to focus on goals of a new car or home, maybe even a vacation to escape the cold, an emergency fund or even retirement savings.
Here are tips to take your savings strategy beyond a mere resolution and turn it into an actual game plan in 2018, making your goals a reality.
Pick a number
… But not just any number. Pick a number based on your goals, and decide how much you’d like to save this year. As a ballpark, we should all be saving about 10 per cent of our incomes. So if you bring in $5,000 a month, that’s $500. When you get a bonus or inheritance or any extra money, sock away 10 per cent of that too! Even if you don’t have a regular income, calculate what you’ve made at the end of each month and put 10 per cent of that into your savings…