We get it. Valentine’s Day is tomorrow and right now you have too many little cupids dancing around in your head to think about anything else. Here’s something you should care about: the RRSP deadline is March 1st, and it’s coming up fast.
A Registered Retirement Savings Plan, or RRSP, is a special type of investment account designed to help Canadians save for retirement. The main advantage of an RRSP account, as compared to a regular investment account, is the tax benefits it offers.
If you’re a tax payer, it’s
probably definitely a good great idea to contribute as much as to an RRSP. Not only will you be putting away money that will grow until you retire, but you’ll be saving right away on taxes. RRSP contributions come off your taxable income, reducing your tax bill for this year. For 2017, any Canadian under 69 is free to contribute as much as 18% of her income, up to a maximum of $26,010. The nice folks at the CRA have provided handy tools to figure out your own contribution ceiling.