Suggestions

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Add existing contribution room field to tax advantaged accounts

Canadian tax advantaged accounts such as RRSP, TFSA, and FHSA all have contribution limits. This contribution room can roll over for use in later years with or without conditions.

I want to be able to set the existing contribution room for the account at the beginning of the projection. If the annual contribution limit is, say $6,500/year, and I have $30,000 of contribution room available, then I should be able to model this.

5 votes

Tagged as Suggestion

Suggested 02 November 2023 by user Rob Albus

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  • 02 November 2023 Rob Albus suggested this task

  • 02 November 2023 Kyle Nolan approved this task

  • avatar
    Philip Lengden

    This may need to be handled across multiple accounts. For example, if I have 3 TFSA accounts then entering my excess contribution room into 1 should be reflected across the remaining 2, AND be drawn down regardless of which account actually receives the funds.

    02 November 2023
  • avatar
    Philip Lengden

    Another consideration is Spousal RRSP’s, as the contribution impacts the spouse giving the funds and not the one receiving them.

    02 November 2023
  • avatar
    Brahm Neufeld

    Expanding on this suggestion, ProjectionLab doesn’t account for the ability to gain contribution space the year after making withdrawals:

    “Withdrawals, excluding qualifying transfers and specified distributions, made from your TFSA in the year will only be added back to your TFSA contribution room at the beginning of the following year.” - link.

    For context, I was hoping to build a couple models to figure out if it was more advantageous to draw down TFSAs OR a taxable account to buy a house. In the TFSA drawdown scenario, ProjectionLab doesn’t have the ability to “give back” the contribution room I’ve re-gained in the year after the withdrawal, it’s hard-coded to the $7000/year contribution.

    17 May