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+--- Thread: Happy Canadian (/showthread.php?tid=1156)
Happy Canadian - cannew - 04-21-2015
The Federal government just presented it's 2015 budget. Once passed, individuals will be allowed to contribute $10,000 per year to their TFSA (tax free saving account), up from $5,500. If you've already contributed the $5,500 you can add the additional $4,500.
In addition, for us old folks (over 71), they dropped the withdrawal rate for RRIF's (registered retirement income fund). When one reached 71 they had to withdraw 7.38% ( increasing each year till it reaches 20%) of the Dec 31st balance in their RRIF. This income would then be taxed at the highest rate. They dropped the rate to 5.28%.
I've estimated that I'll save at least $7,500 in next years taxes because of the changes. The lower rates will reduce my taxes for several years.
RE: Happy Canadian - Roadmap2Retire - 04-21-2015
Congrats on the savings, cannew.
For us, as a married couple - there isnt much except the TFSA contribution room. The RRIF seems like a pretty good deal for seniors.
Btw, for folks looking for details,
http://www.budget.gc.ca/2015/docs/nrc/2015-04-21-e.pdf
RE: Happy Canadian - Kerim - 04-22-2015
Sounds like a nice gift from the gov't, cannew!