As the end of the year quickly approaches and you become busy with friends, family, and the holidays, it is important to remember to review your financial plan and investment strategies to best prepare you for 2023!
Here is our end of year financial planning checklist:
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TFSA Contribution / Withdrawal
Consider making a Tax-Free Savings Account ("TFSA") contribution. The 2022 annual limit is $6,000. This amount does not include any contribution room you have carried over from previous years. The TFSA annual limit is increasing to $6,500 in 2023!
If you are planning to make a TFSA withdrawal soon, we recommend withdrawing before the end of the year so that the amount you withdrew can be added right back to your contribution room on January 1st.
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RESP Contribution
The annual Registered Education Savings Plan ("RESP") contribution deadline is on December 31st, 2022. If you intend to contribute, do so before the deadline to apply for the 2022 Canada Education Savings Grant ("CESG"). The CESG lifetime maximum is $7,200 per child. CESG eligibility ends in the calendar year the child turns 17.
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RRSP Contribution
Consider making your Registered Retirement Savings Plan ("RRSP") contribution by year-end rather than waiting till next year! You can contribute up to 18% of your earned income for 2022, in addition to any unused room from previous years! The 2022 contribution limit is $29,210.
Can't contribute before year end? Don't stress! You have the first 60 days of 2023 to contribute to get the tax deduction for your 2022 tax return.
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Charitable Giving
To be able to claim charitable donations on your 2022 tax return, you must donate by December 31st. Any unclaimed donations can be carry forwarded for the next 5 years.
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Review Important Documents
Has your personal situation changed over the year? Have you moved and not informed us of your new address? Use this opportunity to review your important documents! Most importantly make sure to review your estate plans, including your Will, Power of Attorneys (POAs), and designated beneficiaries to ensure they are up to date!
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Start preparing for tax season
Begin gathering your receipts and documents into one place, so you are ready to file your 2022 tax return.
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Review your insurance coverage
It is best practice to review your insurance coverage at least once a year. Does your coverage still reflect your current situation? Have the needs of you or your loved ones changed in the last 12 months? Make sure your policy is right for you.
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Use up any expiring health plan benefits
Do your employer-sponsored health benefits have annual spending limits that expire at the end of the year? Use them up before they're gone!
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Schedule a year-end meeting with us!
We are here for you! Connect with us today to review your financial plan and let us help you complete your year-end checklist.
