Last week I stated that I would list an additional 5 year end tax saving tips this week. However the CRA have just announced that starting January 2013 the annual contribution limit is now $5,500 (an increase of $500) for every Canadian resident over 18 years of age. This information is too good to pass up–so that 5 year end tax saving tips will have to wait another week.  Now the total limit that an individual can contribute to a plan (since the TFSA started) is $25,500. As a tax saving this is getting too large to pass up. While contributions are not tax deductable, any gain or loss within the account is not taxable when withdrawn.  A simple calculation will show that investing the account similarly to an RSP over a period of time will be more beneficial than a RSP when the funds are withdrawn. If you need more information call me or drop me an email or visit any financial institution. Hundreds of thousands of Canadians can’t be wrong. Check it out!

Last week someone emailed me with a request for a joke, so………………

An accountant is having a hard time sleeping and goes to see his doctor, “Doctor, I just can’t get to sleep at night.”

“Have you tried counting sheep?”

“That’s the problem – I make a mistake and then spend three hours trying to find it!”