On the Money
DAVID TRAHAIR
Personal Finance Cheat Sheet
I
OFTEN FIND MYSELF GOOGLING TO FIND the latest figures related to personal finance, so I thought a short cheat sheet of all the key numbers would be handy.
RRSP: the RRSP limit for 2015 is $24,930. The 18% of earned income in 2014 needed to create this amount of room was $138,500. The limit for 2016 is $25,370, meaning earned income of $140,944 in 2015 will be required to maximize the amount.
RRSP LIMIT Year
2016 2015 2014 2013 2012
Limit
$25,370 $24,930 $24,270 $23,820 $22,970
Prior year earned income required
$140,944 $138,500 $134,833 $132,333 $127,611
Canada Pension Plan: the year’s maximum pensionable earnings (YMPE) for 2015 is $53,600. The year’s basic exemp- tion (YBE) is $3,500. Therefore, at a contribution rate of 4.95%, the maximum Canada Pension Plan contribution is $2,479.95. For self-employed individuals the contribution rate is 9.9%, so the maximum CPP contribution is $4,959.90. Note that the YMPE is adjusted annually based on the change in the industrial composite wage index that is tracked
KEY CPP ISSUES Year
YMPE YBE
Maximum annual
employee
2015 2014 2013 2012 2011
$53,600 $52,500 $51,100 $50,100 $48,300
$3,500 $3,500 $3,500 $3,500 $3,500
contribution $2,479.95 $2,425.50 $2,356.20 $2,306.70 $2,217.60
Maximum annual
$4,959.90 $4,851
$4,712.40 $4,613.40 $4,435.20
by Statistics Canada. The YBE is no longer indexed. The maximum monthly CPP retirement pension for 2015 is
$1,065 and the maximum survivor’s benefit is 60% of that, or $639. The death benefit has been fixed at a maximum one-time payment of $2,500. In 2015 the reduction for collection of the CPP pension
before age 65 is 0.58% a month (6.96% a year). The premium for waiting to start aſter age 65 is 0.7% a month (8.4% a year).
Tax-free savings account: the TFSA started in 2009 for Canadian residents aged 18 and older. Investment income earned in a TFSA and any withdrawals are tax free. Unused
TFSA CONTRIBUTION LIMITS Year
2015 2014 2013 2012 2011 2010 2009
Annual limit $5,500
$5,500 $5,500 $5,000 $5,000 $5,000 $5,000
Cumulative limit $36,500
$31,000 $25,500 $20,000 $15,000 $10,000 $5,000
self-employed contribution
TFSA contribution room is carried forward and accumulates in future years. The full amount of withdrawals can be put back into the TFSA in future years. Neither income earned in a TFSA nor with- drawals from it affect eligibility for federal income-tested benefits and credits such as Old Age Security, the Guaranteed Income Supplement and the Canada child tax benefit.
Maximum CPP
retirement pension
$1,065
$1,038.33 $1,012.50 $986.67 $960
Registered education savings plan: amounts you contribute to an RESP are not tax deductible but earn- ings in the plan accumulate on a tax- deferred basis. When the funds are paid out for a child’s education, the accumulated income earned in the
40 | CPA MAGAZINE | APRIL 2015
Photo: Jaime Hogge
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