Year-End Planning Moves to Consider

As the end of the year approaches, a quick review can help identify planning opportunities before December 31.

Tax-Free Savings Account (TFSA)

If you expect to need TFSA funds early next year, consider whether withdrawing before December 31 may be appropriate. Amounts withdrawn are added back to your TFSA contribution room on January 1, which can provide flexibility if you plan to recontribute. Unused TFSA contribution room carries forward, so there is no annual deadline to contribute.

Registered Retirement Savings Plan (RRSP)

Although the RRSP contribution deadline for the 2026 tax year is March 1, 2027, year-end may be a good time to look at your income, contribution room, and potential tax savings. This may also give you time to plan for a contribution before the deadline.

If you expect a lower-income year, it may be worth discussing whether an RRSP withdrawal could support cash flow or help fund another account, such as a TFSA or a Registered Education Savings Plan (RESP).

Another strategy to discuss is transferring all or part of your RRSP or Locked-In Retirement Account to a Registered Retirement Income Fund or Life Income Fund before year-end, which could allow you to receive the annual minimum payment without tax withholding in the new year.

RRSP and RRIF/LIF withdrawals are taxable, so these strategies should be reviewed with your advisor first.

Non-Registered Accounts (OPEN)

Non-registered accounts can generate taxable income through interest, dividends, or capital gains. Looking at these accounts before year-end may help estimate how they could affect your 2026 tax return.

Registered Retirement Income Fund / Life Income Fund (RRIF/LIF)

If you have a RRIF or a LIF, confirm that your required minimum payment has been completed or scheduled before year-end. You may also wish to discuss whether taking more than the minimum payment could be appropriate based on your income needs, tax position, or future planning.

Registered Education Savings Plan (RESP)

RESPs may be worth reviewing when it comes to both contributions and withdrawals. If there is unused grant room, additional contributions may help maximize available government grants, especially if the student is approaching age 17.

When it comes to withdrawals, it may be helpful to consider the student’s income and timing, as a portion may be taxable to the student. Students in their final year may benefit from spreading withdrawals over two calendar years.

First Home Savings Account (FHSA)

For eligible first-time home buyers, an FHSA can be a useful savings tool. Contributions may reduce taxable income, so it could be helpful to look at your contribution room, income level, and home-purchase timeline before year-end.

Other Year-End Considerations

Charitable donations, whether made in cash or with securities, may provide tax credits if made before year-end.

It may also be helpful to walk through any expected changes to income, employment, retirement plans, family circumstances, tax instalments, or cash flow with your advisor to see whether planning should be considered now.

Year-end planning does not need to be complicated. A timely check-in can help keep your plan on track and ensure the right strategies are considered for your situation.