The contribution deadline for the 2016 tax year has been announced. March 1st, 2017 will be the last day to deposit money into your RRSP for 2016.
Every Year, Canadians are given the option to use the first 60 days in the new calendar year to contribute to the preceding year’s RRSP deductible amount. This means this year you have until March 1st to make an RRSP deposit that can be used when you file your 2016 taxes. When you get your RRSP Deposit slips for deposits made in the first 60 days of 2017, you can choose to use them for 2016 taxes or hold them for 2017.
There is also a contribution limit on the amount you can put into your RRSP per year. For 2016 the limit is based on 18% of your 2015 earned income, less any pension adjustments, to a maximum is $25,370
Understanding how much you should invest into your RRSP, and making sure that the amount fits within your personal financial plan is very important. Our clients have this information in the Financial Plan that we prepared and monitor for them. If you don’t have a plan call us and we will help you create a retirement savings/financial plan with the goal of maximizing your disposable income, minimizing taxes and ensuring security for when you retire.
Check out our blog if you are looking for more details on what to do with your RRSP.