Your year-end 2025 tax strategies

• December 31, 2025: deadline to benefit from government grants available in 2025.
• If you already have a RESP account, be sure to make the minimum contribution each year to maximize the Canada Education Savings Grant (CESG) and the Quebec Education Savings Incentive (QESI).
• Certain strategies should be considered to catch up on contributions from previous years. To learn more, talk to your wealth management advisor.
• If you have a RESP and your beneficiary is enrolled in a qualifying post-secondary program, consult your wealth management advisor to develop an appropriate disbursement strategy.

• December 31, 2025: deadline to benefit from government grants available in 2025.
• If you already have an RDSP account, be sure to make the minimum contribution each year to maximize government grants.
• Certain strategies should be considered to catch up on contributions from previous years. To learn more, talk to your wealth management advisor.

• March 2, 2026: deadline for contributions to an RRSP or a spouse’s RRSP that are deductible for the 2025 taxation year.

• Check with the CRA for your RRSP deduction limit for the 2025 tax year to find out how much you can contribute to your RRSP.

• If you are older than 71 and your spouse is younger, you can still contribute to their RRSP until December 31 of the year in which they turn 71, as long as you have contribution room.
• If you turned 71 in 2025 and earned employment, professional or rental income, you can make a final contribution to your RRSP by December 31, 2025, based on your 2025 income. This excess contribution will be subject to a penalty of 1% per month from the date of the contribution, hence the importance of making the contribution in December. In January 2026, you will have to file a tax form (T1-0VP) in order to calculate and pay the penalty. Despite the applicable penalty, this strategy can be beneficial since it enables you to maximize your use of the RRSP as a tax shelter.
• Make the minimum repayment of your HBP (Home Buyers’ Plan) or LLP (Lifelong Learning Plan) withdrawal. If the required minimum repayment is not made by the RRSP contribution deadline, the minimum amount will be taxable on your tax returns for the 2025 tax year.

• $7,000: eligible contribution amount for 2025. (A little scoop: the annual contribution limit will be the same for 2026!)
• TFSA contribution room accumulates if not used. Check with the CRA for your TFSA contribution room for the 2025 tax year to find out how much you can contribute to your TFSA.
• Contribute the maximum amount to your TFSA annually. Although contribution room is cumulative over the years, you should take advantage of the fact that investments in a TFSA grow tax-free by contributing now. Plan for pre-authorized contributions and take your investment policy into account. Your wealth management advisor can help you plan your contributions and determine whether it would be worthwhile to contribute to your spouse’s TFSA.
• If you need to make a withdrawal from your TFSA in the short or medium term, do it in December of the current year rather than January of the following year. The total amounts withdrawn will add to the contribution limit for the following year, so you can replenish your account quickly, rather than having to wait a full calendar year, as would be the case for a withdrawal in January.

• Minimum withdrawal: At the end of the year in which you turn 71, your RRSP or LIRA must be converted to an RRIF or LIF. You must begin making minimum withdrawals before the end of the year in which you turn 72. Know, however, that the withdrawal can be based on the age of your spouse, especially if that person is younger than you. The minimum withdrawal percentage will be based on your age, or your spouse’s age, at the beginning of the year of the withdrawal, whichever is more advantageous.

Be sure to pay the interest payable for 2025 on your loan no later than January 30, 2026 to avoid the application of income attribution tax rules.

You could crystallize your latent capital losses by selling underperforming stocks to reduce the tax on a capital gain realized this year (or during the past three years, or to be realized in the future). Pay particular attention to the tax rules that may apply and ask your wealth management advisor about the suitability of this strategy in your situation.

You may be planning to invest in mutual funds late in the year. Some funds pay distributions that are taxable for the current year which can result in a substantial tax despite a short holding period. Find out about the payment of distributions before buying funds with a high tax impact.

• The HBP RRSP withdrawal limit for first-time home buyers is now $60,000.
• Temporary repayment relief is available for HBP withdrawals made between January 1, 2022 and December 31, 2025: these benefit from a three-year extension of the repayment grace period. Individuals who have made, or will make, HBP withdrawals during this period now have up to five years before repayment begins.
• If you purchase your first home in December and want to use the HBP, make your withdrawal before the end of 2025 to take advantage of the extension of the repayment grace period.

• The FHSA allows you to contribute up to $8,000 per year, with a lifetime limit of $40,000 and to accumulate tax-sheltered savings for the purchase of your first property.
• You can even combine the HBP and the FHSA for your down payment.
• FHSA contributions are tax deductible, and deductions can be carried forward to a future tax year.
• If you already have an FHSA, consider making a contribution before December 31, 2025 so you can deduct it in your tax returns for fiscal year 2025.
• If you’re eligible to open an FHSA, consider opening an account before the end of the year. Even if you’re not able to maximize your contribution this year, opening an FHSA would allow you to carry forward up to $8,000 of unused FHSA contribution room to the following year. Ask your wealth management advisor now about the conditions for opening this account in order to optimize your contributions.

• Once the account is opened, the maximum FHSA participation period is 15 years. If the amounts accumulated in your FHSA are not used for a qualifying withdrawal, they can be transferred to your RRSP or RRIF with no immediate tax consequences, provided it is a direct transfer and you have no excess FHSA amount. A direct transfer generally has no impact on your RRSP contribution room.