- The deadline to make your contribution for the 2014 tax year is March 2, 2015.
- The tax savings depends on your tax bracket. For example, most people are in the 30% bracket, meaning you can you can expect a $300 savings for every $1000 of contribution.
- You do not need to send a cheque. You simply need to sign a form and the funds can be drawn directly from your bank account.
- If you do not have cash available, consider moving non-registered investments to your RRSP account.
- Also if you do not have the cash now but expect to have money later in the year, consider a short-term RRSP loan. The resulting refund will also help repay the loan.
- For those who took advantage of the RRSP Homebuyer’s Plan, remember to make your annual repayment.
- A Spousal RSP contribution can help couples in different tax brackets optimize their contribution. Contact me to find out more.
- An RRSP contribution does not necessarily mean “being in the markets”. For those that are risk-averse, the contribution can be placed in safer investments like savings accounts, GICs, or income funds. However, return expectations will have to be lowered.
- To prevent having to come up with a lump-sum contribution at the last minute each year, setup a monthly contribution to run throughout the year.