Answer: On filing 2005 Tax Return, you must have received Notice of Assessment from Canada Revenue Agency. Your 2006 RRSP limit is shown on it. At the same time, you will have to consider 'undeducted amount' on the same Notice as well as your obligation under Home Buyers'/Life-long Learning Plan(s). If you require any assistance in this connection, please visit any Softron Location.

Making maximum contributions is the best option in order to capitalize on the tax savings in the year of the contribution.

For 2004: A: Employees under 50 can contribute up to 100% of their earnings (not to exceed $13,000) as an employee contribution to their Solo 401k plan. (Employees who are older than 50 (or who turn 50 in 2004) can contribute up to 100% of their earnings not to exceed $16,000) as an employee contribution to their 401k plan. For 2005: A: Employees under 50 can contribute up to 100% of their earnings (not to exceed $14,000) as an employee contribution to their Solo 401k plan.

Incorporated employers can contribute up to 25% of their W-2 earnings as an employer contribution to their 401k plan. You may not make an employer contribution or employer profit sharing or employer matching contribution to a ROTH 401k account. Unincorporated employers can contribute up to 20% of their self-employment income* as an employer contribution to their 401k plan (in addition to the allowable employee contributions (see above).

The Health Care Reimbursement Account maximum is $5,000. The Dependent Care Reimbursement Account maximum is $5,000 per family, per plan year. ($2,500 if married filing separate Federal Income Tax returns.)

The legislated contribution limits are subject to change each year by the Canada Revenue Agency (CRA). The current maximum annual contribution limits are the lesser of 18% of your previous year's earned income, or $19,000 for 2007 and $20,000 for 2008. individual RRSPs to which you are also contributing.

You will be subject to a 1% penalty tax per month to the extent that the over-contribution exceeds $2,000.00

This information is reflected on the bottom of your Notice of Assessment. It will tell you if you have any room and if you have any undeducted contributions. We will also tell you in the cover letter we enclose with your personal tax return, or you can call the government automated service TIPS at 1-800-267-6999 with your prior year personal tax return in hand. Call us with specific questions should you have any.

The maximum for pre-tax or "Salary Savings" contributions under IRC Section 401(k) limitations is the lesser of $15,000 for the year 2006 (plus $5,000 "catch-up" contribution for 2006 calendar year). Other limitations on contributions, such as total contribution (combined employee and employer) or testing requirements, may reduce that maximum for a specific employee, plan, or plan year.

Employer contributions are limited by the total participating compensation and testing requirements for the employee and Plan levels. Generally, the total contribution for an individual employee would be limited to the lesser of 25% of recognized compensation or $44,000 for the year 2006. On the Plan level, the total employer contributions is limited to 25% of total participating compensation.

In accordance with the Arizona enabling legislation, the balance in all state tuition programs as defined in ?529 of the Code may not exceed the lesser of: a) 7 times the average one year's undergraduate tuition, fees, room and board at the ten independent 4 year eligible educational institutions as measured and last published by the College Board Independent 500 College Index that have the largest total direct charges.

That depends on the level of income both you and your husband can expect at retirement. Ideally, you should try to equalize the retirement income between you to minimize taxes. This means that if you will have a company pension when you retire, and your husband will not, it may be best to contribute to your husband’s RRSP.

If you contribute more than your contribution limit, you will be subject to a 1 percent penalty tax per month to the extent that the over-contribution amount exceeds $2,000.

SPP is designed to be very flexible and to accommodate your individual financial circumstances. These is no minimum contribution. Even contributing $10 per month will build your SPP account and provide you with additional pension at retirement. The maximum contribution is $600 per plan year.

ldquo; See below for our recommendation, this applies so long as the weight limit has not been exceeded.”

By the end of the year in which you turn 69, you must either cash in your RRSP or convert it into a form of retirement income. Most people convert their RRSPs into a Registered Retirement Income Fund (RRIF). This is just like your RRSP, except that you can no longer contribute to it. Like an RRSP, income earned by your RRIF is allowed to accumulate tax-free. However, you must withdraw a minimum prescribed amount each year. You may prefer to use your RRSP funds to buy an annuity.

The IRS currently does not require that states count your investment in other state 529 plans when applying their own contribution limits. And there are no "contribution police" out there looking for people who are intent on using multiple states to stuff hundreds of thousands of dollars into 529 plans as a kind of tax shelter.

The maximum amount you can contribute into your HSA is IRS contribution limit ($2,850 for single coverage and $5,650 for family coverage in 2007), whichever is lower. You might also be allowed to make a catch up contribution up to $800 if you are over age 55. The SHPS HSA contribution calculator can help you determine how much to contribute.