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PlanPlus Planit incorporates the TFSA account type and the tax treatment is correct in the long term planning. There is also some new fields added to support TFSAs:
- Planning Assumptions: Under the Tax Assumptions section, there is a field to enter any unused TFSA room for both the client and spouse
- Modelling Assumptions: There is a new checkbox to optimize contributions to the TFSA. Turning on this flag ensures that you are always using any unused contribution room. This field recognizes contributions and withdrawals to the TFSA over the client’s lifetime. This unique approach allows you to show that not all contributions to the TFSA account are new savings, but rather clients repositioning other open capital into the TFSA. For example for a retired client, they are no longer doing any new savings, but frequently will be moving money into their TFSA account from their accumulated capital in their normal non-registered accounts. This optimization feature is a unique approach to the TFSA that automates the process for you. In other words you won’t have to worry about figuring out when you need to move money into the TFSA in your long term projections. This is all done for you.
- If your client has already accumulated money in their TFSA accounts (as identified on the Assets and Liabilities screen) the Optimization option will automatically turned on and cannot be turned off.