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A Tax-Efficient Lifecycle

Age Tax Planning Milestones
  • 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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