TMXmoney

A Tax-Efficient Lifecycle

Age	Tax Planning Milestones
Birth	Open savings account to invest Universal Child Care Benefit. Resulting earnings are taxed in the hands of the child. Open a non-registered account for transfers of capital.
Under 7	Increased child care expense deductions and Child Tax Benefits.
Age 0-17	Invest in Registered Education Savings Plans and earn Canada Education Savings Grants and Learning Bonds. File tax returns if the child has earned income to build up RRSP contribution room. A "kiddie tax" may apply to certain earnings from private corporations. The child is a dependant for the purpose of Canada Pension Plan disability and survivor benefits. The child is a dependant child for the purposes of the Child Amount.
Age 15	Last year for eligibility for the Canada Fitness Tax Credit and child care expense claims (unless disabled). May qualify for education amount only if courses are taken at a post-secondary level.
Age 17	File a tax return to claim the refundable GST Credit and create room to make contributions to a TFSA-Tax-Free Savings Account.
Age 18	Eligibility to contribute to the Canada Pension Plan. Eligibility to open a TFSA. Contributions to a Registered Disability Savings Plan are based on beneficiary's income. Transfer tuition, education and textbook credits to parents, grandparents or spouse. A $2000 over contribution to an RRSP is allowed.
Age 21	Income earned on deposits of personal injury awards become taxable.
Age 31	Age eligibility for contribution to an RESP ends.
Age 35	Age eligibility for contribution to an RESP ends for a disabled beneficiary.
Age 49	Registered Disability Savings Grant and Bond eligibility ends.
Age 18-55	Earning and investing years: file a tax return every year. Invest in a TFSA every year. Make RRSP contributions every year. Open non-registered accounts for other surplus savings. Buy a tax exempt principal residence. Manage debt and interest costs. Grow your personal net worth.
Age 55	Eligibility for a phased in retirement: take company pension early.
Age 59	Eligibility for contribution to a Registered Disability Savings Plan ends.
Age 60	Eligibility for early withdrawal of Canada Pension Plan Benefits.
Age 65	Old Age Security benefits begin; eligibility for Age Amount. Canada Pension Plan Benefits. In home caregiver amounts may be claimable. Conversion of RPPs and RRSPs to pension benefits.
Age 70	Last year for contributing to the Canada Pension Plan.
Age 71	Conversion of RRSP to RRIF or annuity; maturation of deferred profit sharing plans.
Age 90-100	Maximum RRIF payout age, terms of several types of annuities end.

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