Reduce and defer tax and enjoy your wealth in retirement!

February 09, 2019 | Dan Rudisuela


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A quick and friendly reminder on the importance of your Registered Retirement Savings Plan (RRSP) and how to use it effectively.

RRSP season is upon us. Whether you are proactively making a contribution for 2019 or retroactively making one for 2018, now is the time to do it. The deadline for making a contribution that can be claimed against your 2018 income taxes is March 1, 2019.

Here is a handy RRSP guide with 5 quick tips including information on where to get your RRSP deduction limit (my favourite resource for this is My Account with CRA), tax advantages of the account and even thoughts on US holdings within the RRSP.

Did you know...

  • Tax advantages of an RRSP go beyond reducing your tax bill in the year you claim the contribution? You also benefit from tax-deferred growth until the funds are withdrawn; a potential tax reduction in retirement through income splitting; and a tax-free transfer of wealth to your spouse by naming a successor annuitant.
  • You can contribute to an RRSP up to December 31st of the year you turn 71...and possibly beyond? As long as you have RRSP room, you can contribute to your RRSP until the end of the year in which you turn 71. If you have a younger spouse, you can contribute to a spousal RRSP until they turn 71 and/or you use up all your room.
  • RRSP's can be consolidated? Separate RRSP and Spousal RRSP accounts can be rolled together into one account along with a portion of retiring allowances. Look for opportunities to consolidate to simplify life and minimize account administration costs while maximizing buying power.

To speak one-on-one about personalized strategies to maximize your RRSP, or for a complimentary second opinion on your current retirement savings, please connect with me directly here.