Plan now for year-end to-dos

Oct 2, 2019
Middle aged couple looking at their tablet

In December, many people face a time crunch with holiday planning and end-of-year tasks. But you can reduce the stress by getting a head start on your financial to-do list. Here are some steps you can start planning now.

TFSA withdrawals

Do you plan on taking money out of a Tax-Free Savings Account (TFSA) in the near future? Make the withdrawal before 2019 ends and you can replenish your TFSA in 2020.

RESP contributions

Contribute $2,500 to a Registered Education Savings Plan (RESP) by December 31 to generate a $500 Canada Education Savings Grant (CESG) for 2019.

Trigger capital losses to reduce capital gains

You may want to consider selling non-registered investments that are showing a net capital loss that could offset taxable capital gains realized in 2019. Excess losses can be applied against gains from the previous three years or carried forward indefinitely.

Donate to charity

Make charitable donations by December 31 if you want the receipt for your 2019 tax return.

Make your final RRSP contribution

If you turn 71 in 2019, you must terminate your Registered Retirement Savings Plan (RRSP) by December 31. You have only until the end of the year to make your final contribution, not until February 29, 2020. Any unused portion of your RRSP deduction limit will be lost. However, contributions to a spousal RRSP can be made up until the end of the year your spouse turns 71.

Make strategic withdrawals from your RRSP or RRIF

If you have a large RRSP or Registered Retirement Income Fund (RRIF) that would be taxed at the highest rate as part of your estate, you can decrease the potential tax liability by withdrawing an amount by December 31 that raises your taxable income to the limit of your current tax bracket.

Talk to an Assante advisor about end-of-year financial tasks that you can start working on now.

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