The end of the year is a busy time, especially with the holidays upon us. Here are a few things to review as we bring 2019 to a close.
- Know your benefit dates1
- Send in any outstanding claim receipts2
- Check that your benefits cards and applications are up to date
- Update any changes (address/e-mails/phone numbers/names/beneficiaries/dependents)
1Know your annual reset date. Typically, it is a calendar year. (January 1st – December 31st) However, sometimes, it is the contract year. (The date your plan became effective.)
Be clear about how often the benefits reset. For example, most plans reset vision coverage every 24 months, rather than 12 months. Also, there is a visit or dollar limit on most benefits. Make sure to stay within the limit or the provider will not cover it.
2Remember that you only have 12 months from the date of service to claim any receipts for prescriptions, treatment, or services.
2018’s upper limit was $26,230. The 2019 contribution limit is 18% of earned income that you reported on your income tax return in the previous year, up to a maximum of $26,500. CRA lets you carry forward unused contribution room indefinitely.
*Adjust for any company pension you may receive.
The TFSA started in 2009 and has accumulated the contribution room of up to $63,500 with the annual addition of $6,000 in 2019. You can start a TFSA at age 18. A TFSA is a great tool to shelter interest growth from tax. Often, people use both the TFSA and RRSP simultaneously to aid in unexpected expenses and/or changes that may arise.
Learn more: The Simple Truth: TFSA and The Simple Truth: RRSPs/RRIFs
Start preparation for 2020!
We have many clients who share that they have over-contributed because they forgot to check their limits. Later, they realized that they could have had additional funds for the holiday season. We have also found that their address and contact information was/is outdated, though it is an easy fix. Now is an ideal time to tackle these small details. The essential one is making sure that the beneficiaries are correct. This has caused problems for families in the past. It cannot be stressed enough.
If you feel we can help you with any of these details, please reach out to us. We are always happy to help.
Have a question? Or need clarification?
Call to schedule an appointment with one of our advisors.