and I’m always tinkering with ways to max out this benefit. It’s worth my time since the CPP clawback basically means that parents in Canada might be paying an effective tax rate of 65%+ on every dollar they earn.
I have a question about delaying CPP (and focusing on reducig RRSP) – i thought it was better for him to start collecting CPP right at 60 so that the years so that not meeting the maximum contribution level (50k or so) would not affect his average. If he delays it until 65 or mor...
The RRSP contribution limit for 2025 is $32,490 (this number changes annually — it was $31,560 in 2024), plus any unused contribution amounts from previous years. This combined amount is sometimes called “contribution room.” 🤓 Nerdy Tip: The RRSP contribution limit is sometimes referred...
For the 14-year-old, provided that Gary opens an account in 2024, and there is no increase to RESP contribution or CESG rules, then this is what the math would look like. Contribution CESG 2024 (age 14) $5,000.00 $1,000.00 2025 (age 15) $5,000.00 $1,000.00 2026 (age 16) $5,...
The Canada Pension Plan (CPP) demands employer-matched contributions calculated at 5.95% of pensionable earnings, with a 2024 annual maximum of $68,500. The workers’ compensation requirements can be complicated as each province operates its own compensation board and contribution rates based on ...
People also don’t seem to realize that the Canada Pension Plan doesn’t offer a full survivor benefit to the surviving spouse. Sometimes, she says, all that happens is that the surviving spouse gets their CPP topped up to the maximum individual benefit amount from what their late partner wa...
CPP Pension Income Splitting: Complete a CPP pension income splitting form and your combined CPP income will be taxed based on contributions made during the years that you lived together. Defined Contribution Pension Splitting: You can convert your defined contribution pension account into an annuity,...
How comfortable are you handling your own investments from when you retire to age 70 – to when you can max out your OAS and CPP? Basically, the more comfortable you are with risk, handling your own investments, and wanting maximum control over everything – the less value an annuity will...
CPP Pension Income Splitting: Complete a CPP pension income splitting form and your combined CPP income will be taxed based on contributions made during the years that you lived together. Defined Contribution Pension Splitting: You can convert your defined contribution pension account into an annuity,...
CPP Pension Income Splitting: Complete a CPP pension income splitting form and your combined CPP income will be taxed based on contributions made during the years that you lived together. Defined Contribution Pension Splitting: You can convert your defined contribution pension account into an annuity,...