August 7, 2025 - Release Notes - Automatic TFSA Top-ups

Moving money from non-registered assets to a TFSA can help reduce future taxes payable on investment growth. You can now automate this process in Snap from the Scenario Setup -> Assets -> TFSA page. You'll check the box to Maximize TFSA contributions for this scenario, which will automatically enable Use spousal resources if necessary. Each checkbox applies to both spouses.

At the beginning of each year, Snap will check whether there are non-registered balances and TFSA Contribution Room. If there is available room that isn't required for manually entered TFSA Contributions, Snap will transfer cash from non-registered assets into the TFSA.

Snap factors in taxes payable on investment income in the year of the automatic transfer, ensuring the client's Base Expenses aren't impacted. For instance, if the contribution results in tax savings from sheltered growth, the withdrawal from non-registered assets will be reduced by the tax savings. If the contribution requires realizing a capital gain, the taxes payable on the gain will be withdrawn in addition to the amount required for the contribution.

If the Client has insufficient non-registered assets, Snap will transfer cash from the Spouse's non-registered assets.

You continue to have full control and transparency of cash flow in Snap. You can override accounts on the Planning Page if you don't want them used for Contributions or Withdrawals in a particular year or any period.

You can find a full overview of the feature in our dedicated Automatic TFSA Top-ups article.

This feature adds to the Taxable Income Targeting feature that we released in July to provide automated tools to help reduce the time taken to create optimized scenarios for your clients. We are excited to continue sharing these features with you as they become available. Please continue to let us know if you have any feedback on the Automatic TFSA Top-ups or Taxable Income Targeting tool, or if there are other common optimizations that you test in your client scenarios (e.g., CPP Start Age timing).

There have been several budgets passed this year that require updates to tax rates and other programs. These have been incorporated into Snap to ensure projections remain up to date.

Examples of changes include:

• Federal:
  • Personal changes:
    • Lowest tax bracket reduced from 15% to 14.5% in 2025 and 14% in 2026 onwards.
• Alberta:
  • Personal changes:
    • New tax bracket of 8% on the first $60,000 of income.
• Nova Scotia:

  • Personal changes:

    • Personal amount increased to a fixed amount of $11,481 for all residents.
      • Personal amount Income-based reduction is eliminated as of January 1, 2025.
    • Age amount increased from $4,269 to $5,734 in 2025.
    • Non-eligible dividend tax credit rate drops from 2.99% to 1.5% of the grossed-up amount.
  • Corporate changes:
    • Small business tax rate reduced from 2.5% to 1.5%.
    • Small business limit increased from $500,000 to $700,000.
• PEI:
  • Personal changes
    • Personal amount increased from $14,250 to $14,650 in 2025 and $15,000 in 2026 onwards.
    • Spouse or equivalent amount increases from $12,103 to $12,443 in 2025 and to $12,740 in 2026 onwards.
    • Spousal amount threshold increases from $1,210 to $1,244 in 2025 and to $1,274 in 2026 onwards.
  • Corporate changes:
    • General tax rate reduced from 16% to 15%.
    • Small business limit increased from $500,000 to $600,000.

These changes may impact your existing projections.