The Canada Revenue Agency (CRA) has made annual announcements about the nation’s retirement programs. Namely, the Canada Pension Plan (CPP) and the Registered Retirement Savings Plan (RRSP) are being updated as we enter the new year.

Here are the changes you need to know and how to use them to your advantage. CRA raises CPP ceiling

In 2021, the maximum pensionable earnings under the CPP will be $61,600. That’s a whopping 4.9% higher than the $58,700 ceiling in 2020. CRA has also raised the rate of employee and employer contributions to 5.45% from 5.25% last year and the self-employed rate to 10.9% from 10.5% last year.

This means Canadians will be paying more towards their CPP in 2021. Of course, this has nothing to do with the ongoing economic issues. Instead, the rates are decided based on a CRA-mandated formula that accounts for wage and salary growth over the past year.

CRA updates RRSP limit

Similarly, the CRA has also raised the cap on the dollar amount Canadians can contribute to their RRSP in 2021. The dollar limit is set at $27,830 for 2021 — up from $27,230 in 2020. Although that extra $500 doesn’t seem like much today, it could add a significant boost to your portfolio, if invested in the right stock.

Bottom line

The CRA has updated rules about the CPP ceiling and RRSP contribution limit for 2021. Both programs are a critical part of the financial future for every Canadian. Investors should use these generous tax incentives to boost their portfolio with all-weather stock or financial products to help you maximize your investments. Contact us for more information.


Events & Sponsorship

Toronto Entrepreneurs Conference @ Mississauga

May 08, 2019 Our B.E.S.T. (Business Entrepreneurs Services Team) Group has participated in this event for first time. Toronto Entrepreneurs Conference and Trade Show is the largest Entrepreneurs event in Canada. The event which targets business owners, partners or...

Hispanic Fiesta 2018

September 04, 2018 RGB Accounting will participate in this event for a second year in a row. Hispanic Fiesta will be held at Mel Lastman Square in Toronto during the Labour Day Weekend, August 31st, Sept. 1, 2, & 3, 2018. Hispanic Fiesta is a four-day celebration...

Secure Your Future Seminar 2018

June 20, 2018 This event gathered business owners running a small or medium-sized business, self-employed and incorporated businesses willing to learn tax saving strategies to help them utilize their company assets to secure their retirement. We are proud of having...

2nd Latino Business Expo Show

May 19, 2018 The 2nd Latino Business Expo Show held on May 19th at Daniels Spectrum gathered a wide range of entrepreneurs and business owners avid to learn how to take their businesses to the next level. RGB Accounting participated as vendor and speaker at this...

Hispanic Fiesta 2017

September 04, 2017 Hispanic Fiesta, a celebration of Spanish and Latin-American: Arts, Food, Music and Entertainment, is a four-day celebration filled with the splendid sounds, tempting treats and colorful culture featuring 300 local, national and International...

Articles & Publications

Shareholder Owners Salaries vs Dividends

Shareholder Owners Salaries vs Dividends. Which Method is Better for You?   When is it better to pay yourself a salary vs. dividends as the owner/manager of a corporation?  Each method has pros and cons, and as a business owner, you should be aware of your options...

Understanding the Shareholder Loan

Understanding the Shareholder Loan. How to Use it to your Advantage and Stay Compliant with CRA If you are the owner-manager of a corporation, understanding the concept of the shareholder loan is essential to running your business. Below I will explain what a...

GST/HST for digital economy businesses

GST/HST for digital economy businesses Overview New rules for digital economy businesses are in effect as of July 1, 2021. As of July 1, 2021, digital economy businesses, including digital platform operators, may have potential goods and services tax/harmonized sales...