04-21-2015, 06:02 PM
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.
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.