2026 January Newsletter

 

RRSP & TFSA for 2026

 

As 2026 begins, best wishes for a prosperous year. The arrival of January brings updated contribution room for Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA), presenting an opportunity to review financial strategies and take advantage of new limits.

 

TFSA vs. RRSP: What's the Difference?
TFSAs and RRSPs both offer tax advantages that can help you achieve your saving and investing goals. How you should protect your income isn't always clear cut, but your savings plan can include a TFSA or an RRSP or both. So, it's important to understand how they differ.

 

• Primary Use - RRSPs are typically used to save for retirement. TFSAs are typically used to save for any purpose.
• Withdrawals - RRSP withdrawals are taxable, subject to certain exceptions. With a TFSA, you can withdraw money any time, tax-free!
• Taxation - Contributions made to your TFSA are not tax-deductible. RRSP contributions are tax-deductible. This means any contribution you make may reduce the amount of tax you pay on your personal income.
   

You may click here to learn more.

 

2026 Contribution Limits

Contributions for the 2026 start on January 1:

• The 2026 contribution limit for a TFSA is $7,000.
• In 2026, you could contribute 18% of your earned income from the previous year or a maximum contribution of $33,810 (Footnote 1), subject to certain adjustments.
   

 

Important Reminders for January

• Initiating contributions early may assist in meeting deadlines.
• Begin collecting documents relevant to the 2025 tax season.
• Assess the performance of last year's portfolio and consider a review at the start of the year.
   

 

Wealth Perspectives

This month, check out my website for a few new articles on market perspectives:

• Business owners: When founders should prioritize personal wealth
• Commodity catalysts: How AI demand and energy transition could propel commodities higher
• Interest rate outlook: Will the BoC be on hold for all of 2026?
   

Upcoming Event

As we move into 2026 and shift our focus to the opportunities ahead, TD Asset Management Inc. (TDAM) is pleased to invite you to The Year Ahead: Turning Uncertainty into Opportunity broadcast Thursday, January 8, 2026 at 4:00 PM - 5:00 PM.

 

It's a 45-minute panel discussion where they will share their outlook for the upcoming year and dive deeper into what we might expect to see from key asset classes in 2026. Please click here for more details and registration

 

Useful Tips - What tax slips should I expect to receive?

Depending on the type of products and services you had throughout the year, you may receive different types of tax slips. You may reference this resource for expected tax documents.

 

Want to confirm contribution room or map out a contribution schedule? Please contact us to book a quick check-in for January.

 

Footnote 1: Source from CRA website