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Registered Plan Rules for 2017

REGISTERED RETIREMENT SAVINGS PLANS (RRSPs)

  • The maximum contribution for the 2016 tax year is $25,370. Please make your cheque payable to NBCN Inc. and ensure that we receive it by no later than February 24th
  • The maximum contribution for the 2017 tax year is $26,010
  • You may contribute up to and including the year in which you turn 71 years old
  • You may contribute to a spousal plan up to and including the year in which your spouse turns 71
  • You can find your unused RRSP contribution room and 2016 limit on your 2015¬†CRA assessment
  • RRSP contribution room is calculated based on earned income only. Interest, dividends, capital gains and pension income do not generate RRSP contribution room
  • For residents of Ontario, B.C. and Nova Scotia in the top tax bracket, a $26,010 RRSP contribution will generate a tax refund of about $13,785; amounts will vary by province

REGISTERED RETIREMENT INCOME FUNDS (RRIFs)

  • There are no changes in the RRIF rules for 2017
  • If you are turning 72 in 2017, we will be in touch will you to arrange for the execution of the documents necessary to convert your RSP to a RRIF

REGISTERED EDUCATION SAVINGS PLANS (RESPs)

  • There are no changes in the RESP rules this year. The Federal grant remains at 20% of the amount contributed up to a maximum of $500 per child per year, so that a contribution of $2,500 per child triggers the maximum annual grant. If you have missed a year of contributions, you can double the contribution in any year and receive $1,000 per child.
  • Grants are made to plans up to and including the year in which the beneficiary child turns 17, and up to a lifetime maximum of $7,200 per child. The maximum contribution per child is $50,000.

TAX FREE SAVINGS ACCOUNTS

  • The maximum contribution for 2017 is $5,500. The cumulative amount of allowable contributions from inception of the plan is now $52,000
  • Contributions may be made by Canadian residents 18 years of age or older.
  • Funds may be withdrawn from a TFSA at any time, but cannot be replaced until the next calendar year.

If you have any questions about your registered accounts, please contact your account manager, and we will be happy to discuss this with you.