The deadline to contribute to an RRSP this year is March 1, 2022.
An RRSP is one of the best ways to save for retirement and a contribution may reduce your taxable income including CERB amounts received.
We offer you 4 easy ways to contribute to an Existing RRSP:
- You can call us at 905-827-8066, ask for Rose or send us an e-mail to: email@example.com for Tony Maduri or firstname.lastname@example.org for Adam Maduri to do an EFT (Electronic Fund Transfer) from your bank account.
- You may also want to consider catching up on your unused RRSP contribution room, with a Freedom 55 Financial Solution Banking RRSP instalment loan – Call us to discuss your options and rates. Deadline for a loan is Thursday, February 28, 2022.
- You can also drop off or mail us a cheque. Please call us for instructions.
- Online banking contributions. Please call us for instructions.
To Open a New RRSP:
Give us a call at Maduri Financial Group – 905-827-8066 and we would be more than happy to help you set up an appointment to open a RRSP account before midnight on Monday March 1, 2021. All contributions made or received in our office by midnight March 1, 2021 are eligible for a 2020 tax receipt.
As Canada’s federal government prepares for another encounter with COVID-19, Canadian borrowers must face a second hazard: the prospect of a sharp rise in interest rates in 2022. We might be in the final stages of lower rates right now and might be our last few months to capitalize on these rates before they start rising. Our firm has decided to expand our partnership so that we can offer you a wider selection of Mortgage plans and options. We have added Paul Wade – Champion Mortgage powered by Axiom Mortgage Solutions to help us with your Mortgage needs. We can help with a new purchase, refinancing options or Mortgage renewals and can offer up to 120-day rate guarantee. Please call us to discuss your options or for up-to-date mortgage rates.
Reporting the Sale of your Principal Residence:
Since the 2016 tax year, you are required to report basic information (date of acquisition, proceeds of disposition (e.g. sale) and address) on your tax return when you sell your principal residence to claim the full principle residence exemption. You do not have to pay tax on any capital gain when you sell your house if it was your principal residence for all the years you owned it and you did not use any part of it to earn income.
Working from Home Regarding Covid:
The new temporary flat rate method simplifies your claim for home office expenses. You are eligible to use this new method if you worked more than 50% of the time from home in 2021 due to the COVID-19 pandemic. You can claim $2 for each day you worked from home. The maximum you can claim using the new temporary flat rate method is $500 per individual. You do not need a completed and signed T2200 form from your employer to claim this credit.
Contribution room limit for 2022 has been increased by $6,000, for a total of $81,500.
A complete financial plan should address all financial planning components:
- Cash Management plan: Income, savings and spending, plus effectively dealing with debt.
- Estate Planning: Having proper wills and power of attorney documents that accurately reflect your wishes, and reviewing asset ownership structures and beneficiary designations to ensure they are not conflicting with these documents.
- Investment Planning: Building an appropriate investment plan that aligns with your willingness to assume risk and considers your need for taking the risk.
- Retirement Plan: Planning how much to save for retirement and spend in retirement, and utilizing the optimal vehicles (RRSPs, TFSAs, corporate savings, non-registered savings) to reach the targets you set.
- Risk Management Plan: It is generally best to use insurance for events with a low probability of occurring, but very severe consequences. Events such as disability or death require income replacement for your family.
- Tax Plan: Every Canadian has the right to organize their affairs to pay the lowest amount of tax possible while complying with the country’s tax code.