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Kevin-Barry Henry

2023 Money Planning Cheat Sheet in Canada

It’s the time of year when the government releases a lot of numbers for us to use in 2023.

Here is a useful Money Cheat Sheet that you can use as a reference:

  • RRSP contribution limit: $30,780 or 18% of income, whichever is less (Read useful RRSP articles here)
  • TFSA limit: $6,500, $88,000 lifetime for someone who has never contributed and was at least 18 years old in 2009 (Read useful TFSA articles here)
  • Maximum Pensionable earnings: $66,600, this amount is used in a variety of benefit and pension calculations. For example, when a person’s earnings cross this threshold during the year, their CPP contributions will stop for the balance of the year
  • The lifetime capital gains exemption: $971,190, an important figure for business owners
  • Family loan interest rate: 3%
  • Age amount tax credit: $8,396, tax credit for those over age 65
  • OAS claw-back threshold: $86,912 in 2023, for every dollar over this amount, OAS will be reduced by 15 cents (read useful OAS articles here)
  • Lifetime ALDA (Advanced Life Deferred Annuity) dollar limit: $160,000. You may recall this is a solution to defer some RRIF income by purchasing an annuity that starts income as late as age 85. (See articles here)
  • Home Buyers Plan: $35,000 is the maximum amount that can be borrowed from one’s RRSP for the purchase of a new home. For couples, each can use their own RRSPs for a combined maximum $70,000 (Read useful articles here)
  • Tax-Free First Home Savings Accounts (FHSA) This plan is projected to go live in April 2023 (as of this writing) (read useful articles here)

I hope these figures will be help you help you with your financial planning decisions. If you would like to discuss your own plan, feel free to reach out to me for free chat here: FIFTEEN MINUTES FREE

With Gratitude,

KB.

THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.

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