FidelityNow: 2025 year-end tax strategies

[00:00:04.371] Understanding trade deadlines is really important.

[00:00:07.574] So, anything that advisors want their clients to have sold,

[00:00:14.014] that transaction needs to be done by December 30th.

[00:00:17.851] So that it can settle by December 31st.

[00:00:20.120] Because if it pushes into the next year, then it's going to fall into to 2026

[00:00:24.858] where some of these deadlines

[00:00:26.326] are really important as if we're looking at like an RESP, for instance.

[00:00:30.330] So in that circumstance, if somebody wants to be able to

[00:00:32.699] receive grant for 2025, again, that contribution has to be made

[00:00:36.636] by December 30th in order for them to be able to receive the grant.

[00:00:40.000] Where RESPs are interesting and sort of different than

[00:00:44.110] some other account types is,

[00:00:45.879] if a child has never opened an RDSP or an RESP, pardon me,

[00:00:50.517] or hasn't received grant by the age of 15,

[00:00:54.387] that contribution needs to be made by December 30th of this year.

[00:00:58.625] In order for them to receive grant, because if they don't receive grant

[00:01:02.462] the year that they are 15 they, even if they make contributions

[00:01:06.733] when they're 16 or 17, they won't be eligible for grant at that point.

[00:01:11.104] So that's definitely something that's important.

[00:01:13.473] RDSPs as well, the

[00:01:15.208] Registered Disability Savings Plan, again, it follows year end.

[00:01:18.912] So if somebody wants to receive grant, that contribution needs to be made

[00:01:22.682] by December 30th, so it settles by the 31st.

[00:01:25.718] And then if somebody is 49 this year, that's the last year

[00:01:29.823] that they can make contributions to the RDSP and receive grant for that.

[00:01:34.494] So again, they want to be cognizant of of that as well.

[00:01:37.664] Any time that somebody makes a withdrawal out of a spousal RSP,

[00:01:41.401] if contributions were made in that year

[00:01:44.370] or the previous two years to a spousal RSP,

[00:01:47.540] any amounts that are withdrawn end up attributing to the contributor.

[00:01:51.311] So that defeats the purpose of what they were setting it up for.

[00:01:55.849] So what you want to do is make sure that you're very cognizant of

[00:01:59.786] when the last contributions went in before withdrawals start.

[00:02:03.123] Now there is an exception.

[00:02:04.190] So if they RRIF and they make the minimum withdrawal out of the RRIF,

[00:02:09.462] even if contributions went in the three years before that withdrawal,

[00:02:13.233] it's still going to be taxable to the individual who made the withdrawal.

[00:02:17.804] But if they withdraw amounts above the minimum,

[00:02:20.573] then that would attribute back to the contributor.

[00:02:23.109] Can't get the withdrawal just be made by the other person.

[00:02:25.979] I mean, isn't that how you would do that?

[00:02:27.914] So the withdrawal is made by the annuitant of the account.

[00:02:32.118] Yeah. Yes, yes, but

[00:02:33.186] if that withdrawal is above the RRIF amount, the RRIF

[00:02:36.823] minimum, that's why it would attribute back to the contributor.