The deadline to contribute to your RRSP is March 1, 2018.
A few things you should know about RRSP contributions:
· The amount of refund you will receive is directly related to your tax bracket. If you pay 25% tax then your savings will be 25% of your contribution, ie $250 for a contribution of $1,000. The higher your tax bracket, the more tax savings you will incur.
· Contributions can be rolled forward to be used in a subsequent year.
· Contributions must be within your RRSP room amount or penalties will apply.
· A spousal contribution is one where you get the deduction, but come retirement your spouse withdraws the funds and pays the tax on them. This is especially useful for spouses where one is in a higher tax bracket than the other.
Come in and see us to determine if you qualify for this credit.