Jamie Golombek, Managing Director, Tax & Estate Planning, CIBC Wealth Advisory Services, explains that for most incorporated business owners in 2015, investing in a TFSA will beat leaving surplus funds in the corporation for investing, especially with a longer time horizon. Full report: https://goo.gl/6RTAYd
The increase in the TFSA’s annual contribution limit this past spring has small business owner clients wondering if leaving funds in their corporations still makes sense
Often viewed as a simple savings account, tax-free savings accounts have new, higher limits and cumulative contribution room. But taxpayers who pile up large sums quickly should beware the CRA
Tax professionals recommend that clients make maximum contributions to their TFSAs- by making withdrawals from RRSP or RRIF assets if no other funding is available. But it should be done in a tax-efficient way
New research reveals that half of Canadians are unaware of what they actually hold within a TFSA
The vast majority of clients can continue to contribute and invest in their TFSAs without worrying about the CRA
The increase in the TFSA’s annual contribution gives advisors a golden opportunity to contact clients and extol the virtues of the investment vehicle
Many are unaware of recent contribution limit changes
Now double the limit of when the TFSA was first introduced, the savings vehicle has many benefits for higher- and lower-income clients alike
The CRA has confirmed that Canadians can top up their TFSAs with the new $10,000 limit for 2015