Saving and Investing
The beginning of a new year is often the time that individuals consider making contributions to their Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). If this is something you are contemplating, here is some information you should be aware of.
Important RRSP information
To qualify as a 2018 deduction, contributions to your own or to a spousal RRSP must be made on or before Friday, March 1, 2019.
Your personal RRSP deduction limit can be found on your RRSP Deduction Limit Statement provided by the CRA on your most recent Notice of Assessment which can be accessed by logging into MyCRA.
The maximum amount is determined as follows:
- 2018: 18% of previous year’s earned income up to $26,230
- 2019: 18% of previous year’s earned income up to $26,500
- + (Plus) Pension Adjustment Reversal (PAR)
- + (Plus) Unused deduction room earned in previous years
- - (Minus) Previous year’s Pension Adjustment (PA)
- - (Minus) Current year’s Past Service Pension Adjustment (PSPA)
Important TFSA information
If you have previously fully utilized your TFSA contribution room, the maximum amount you can contribute into a TFSA in 2019 is $6,000.
If you have been both a Canadian resident and over the age of 18 since 2009, and have never made a TFSA contribution, you would be able to contribute $63,500 to your TFSA in 2019.
Otherwise, if you are 18 years of age or older and a Canadian resident, your individual contribution room is calculated as follows:
- The annual TFSA dollar limit ($6,000 for 2019); plus
- Any unused TFSA contribution room from the previous year; plus
- Total amount of withdrawals from TFSAs in the previous year (excluding qualifying transfers and withdrawals of TFSA “excess”).
You can request your individual TFSA contribution room by calling 1-800-267-6999 or by logging into MyCRA.
Get in touch with an ATB Financial Advisor to learn how you can best use your TFSA and RRSP to help reach your financial goals.
ATB Wealth® (a registered trade name) consists of a range of financial services provided by ATB Financial and certain of its subsidiaries. ATB Investment Management Inc. and ATB Securities Inc. are individually licensed users of ATB Wealth. ATB Securities Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.
The information contained herein has been compiled or arrived at from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness, and ATB Wealth (this includes all the above legal entities) does not accept any liability or responsibility whatsoever for any loss arising from any use of this document or its contents. This information is subject to change and ATB Wealth does not undertake to provide updated information should a change occur. This document may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions and conclusions contained in it be referred to without the prior consent of the appropriate legal entity using ATB Wealth. This document is being provided for information purposes only and is not intended to replace or serve as a substitute for professional advice, nor as an offer to sell or a solicitation of an offer to buy any investment. Professional legal and tax advice should always be obtained when dealing with legal and taxation issues as each individual’s situation is different.