Did You Know...

TFSA - Did You Know . . .

Posted by lbourgeois on Wednesday, January 04, 2012.
Categories: TFSA

The 2012 new TFSA room will again be $5,000. Although many within the financial industry had interpreted the legislation to mean that the annual inflation rate was accumulative so had expected the 2012 new room to be $5,500, CRA announced December 2, 2011 that the 2012 new TFSA room would remain at $5,000.
Although an individual's TFSA room is reported on their CRA Notice of Assessment, the majority of the time that information is incorrect. In most cases at the time of issuance, CRA has not yet updated the previous year's TFSA contribution/withdrawal reporting from the financial institutions.
Taxpayers who do many deposits and withdrawals throughout the year should be encouraged to sign-up for CRA's MY ACCOUNT on-line access. They should then wait until the previous year's TFSA information is posted prior to making their current year's deposits.
When a TFSA holder dies and a spouse/CLP was named as beneficiary, s/he is also considered the successor holder. Ensure you know your data system to ensure proper CRA reporting so that the surviving spouse/CLP has no problem with his/her TFSA contribution room.
CRA only requires a T4A issued for the interest earned after the date of the TFSA holder's death when the funds are paid out to a beneficiary or estate. If the interest is less than $50, the T4A does not need to be issued. Refer to this CRA link - When to complete a T4A.
A TFSA does not need to be opened in order for contribution room to accumulate.
Funds withdrawn from a TFSA cannot be redeposited into the TFSA during the same year unless the holder has existing TFSA room prior to the withdrawal.
If a TFSA holder invested in a stock that increased in value from $5,000 to $12,000, the $7,000 gain is not taxable.
If that same holder withdrew the $12,000 from the TFSA, his/her TFSA room would increase by an additional $12,000 in the following year.

RDSP - Did You Know . . .

Posted by lbourgeois on Thursday, December 30, 2010.

Effective January 2011 unused grant and bond entitlements from previous years (2008 and forward) may be claimed for in the future. I.e. Fully qualified beneficiary opens a new Disability Savings Plan in 2011 may be entitled to a maximum grant of $10,500 ($4,500 contribution required) and $4,000 in a bond credit ($1,000 for each year of '08, '09, '10, '11) Read More

LIRA, LIF - Did You Know? ? ?

Posted by lbourgeois on Monday, June 21, 2010.

Effective May 31, 2010 changes to the Manitoba Pension Benefits Act and Regulations came into effect. Changes include: release due to non-residency; release due to shortened life must have annuitant terminally ill with a doctor certifying death likely within 2 years; spouse/CLP of original pension plan member can waiver his/her death benefit from the LIRA or LIF. Want to learn more? Watch our Calendar page for Spring 2012 sessions. Read more . . . .

RRIF - Did You Know . . .

Posted by lbourgeois on Thursday, March 25, 2010.

Less than 40% of Canadian workers have a pension plan through their employer. Once retired they will have to wait until age 65 for thier RRIF payments to qualify for the $2,000 Federal Pension Income Credit (provincial credit varies per province). Read More

RESP - Did You Know . . . .

Posted by lbourgeois on Thursday, February 12, 2009.

When joint subscribers are the parents, always put the mother’s name first on the RESP application and grant/bond application. Read more.

RRSP - Did You Know . . .

Posted by lbourgeois on Thursday, February 05, 2009.

A new RSP may be opened over the telephone provided the person is a member of the credit union and the credit union can confirm the individual’s identity. (Internal credit union policies may require the member to sign at a later date.) Read more

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