In volatile markets, we encourage clients to think about one of the basic rules that guide us at Pembroke: a regular contribution schedule is better than trying to guess the right time to invest.
Utilizing tax preferred accounts in your financial plan can be of benefit when it comes to future planning, whether it is for retirement, special circumstances, big purchases, trips, children’s education or other purposes.
RRSPs in 2023 and 2024
The deadline for contributing to your Registered Retirement Savings Plan for the 2023 tax year is February 29, 2024.
The maximum you can add to your RRSP in 2023 is the lesser of 18% of your reported earned income from the previous year or $30,780 (unless, of course, you have unused contribution room). For the 2024 tax year, there is only one change: the maximum contribution limit jumps to $31,560.
You can find your 2023 deduction limit on your 2022 Notice of Assessment or by accessing your account on the Canada Revenue Agency’s website.
TFSA limit in 2024
The maximum annual contribution for Tax-Free Savings Accounts has increased to $7,000 in 2024 (from $6,500 in 2023).
This means that the cumulative lifetime contribution room for these accounts is now $95,000 for investors who have met all eligibility requirements since the TFSA came into effect in 2009.
Should you like to discuss additional RRSP contributions for 2023, your TFSA and RRSP contribution plan for 2024, or discuss your portfolio in general, do not hesitate to contact your Pembroke representative.
Other Articles Of Interest
This report is for the purpose of providing some insight into Pembroke and the Pembroke funds. Past performance is not indicative of future returns. Any securities listed herein, are for informational purposes only and are not intended and should not be construed as investment advice nor is it a recommendation to buy or sell any particular security. Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Pembroke seeks to ensure that the content of this document is correct and up to date but does not guarantee that the content is accurate and complete and does not assume any responsibility for this. Pembroke is not responsible for decisions or actions taken or made on the basis of information contained in this document.