Throughout tax season, check in with clients to ensure they’re taking advantage of all credits and opportunities.
And when helping older investors, Standard Life suggests offering these four tips:
1. Consider pension-splitting opportunities: If a client is older than 65, she can create eligible pension income by transferring funds that are invested in non-registered GICSs to term funds or other annuity products. She can then split that income with her spouse, as well as review her estate planning options.
Read: How to file taxes for snowbirds
2. Avoid RRSP penalties: Before a client starts converting her RRSP into a RRIF, ensure she hasn’t over-contributed to prevent costly penalties.
3. Carry forward RRSP tax deductions: Following RRSP contributions, your client can carry forward deductions—even if she’s older than age 71. If she’s expecting a lower marginal tax rate in future years, make sure all available tax deductions are used.
Read: Tax credits for seniors
4. Make the most of TFSAs: TFSA investment income isn’t taxed, so help clients leverage these accounts. Those who haven’t yet opened a TFSA have $31,000 of contribution room this year.
For more, read:
Canadians confused when filing taxes