Last Minute RRSP Tips

We all know that life can get pretty hectic. There’s always another errand to run, an appointment to schedule, a problem to solve, or a goal to achieve. And of course, you deserve a little time now and then for some fun, rest and relaxation, too!

And so, in the midst of all this, it’s easy to forget that this years RRSP contribution deadline is quickly approaching.

Fortunately, if you’ve been too busy to invest in your RRSPs this year, don’t worry! Here are five tips to help you get back on track:

1. Review your  latest Notice of Assessment from the CRA to see how much you can contribute to your RRSPs this tax year. If you can’t find your Notice of Assessment, then contact the CRA. Also keep in mind that unused RRSP contribution amounts from previous years can be carried forward, too. 
2. If you’re a little (or maybe a bit more than a little) short of your desired RRSP contribution amount this year, then either a catch up loan or an RRSP loan could be the right solution. Catch up loans are short-term loans that are designed to be repaid quickly – usually with your tax refund. RRSP loans are longer-term loans, with terms ranging up to a year. Contact our Financial Advisors for more information, and for help in choosing the loan option that’s right for you and your RRSP goals.  
3. If you’re married or in a common law relationship, you may be able to maximize your combined savings via a spousal contribution. Here’s how it works: the partner with the higher income invests in the RRSP belonging to the partner with the lower income. Then, when high income partner files his/her taxes, some or all of that contribution can be used to offset the amount of taxable income. There are some important rules here regarding contribution amounts, so please talk to one of our Financial Advisors, or contact the CRA, for full details.
4. One of the reasons you may not have contributed to your RRSP this year (so far!) is because you just aren’t sure where to invest your hard-earned savings. Indeed, with so many options and possibilities, it can seem overwhelming. If you feel this way, then our best advice is that you simply invest in an RRSP savings account. It works just like a regular savings account, except that it’s part of your retirement plan. Best of all, there’s absolutely no risk – your deposit is guaranteed and earns interest. You can then speak with our Financial Advisors, learn more about your options, and choose the right path for your retirement savings.
5. Lastly, although it might not help during the current RRSP contribution season, you can certainly get a head start on next year by setting up an automatic RRSP savings program. On a monthly or bi-weekly basis, you can automatically transfer funds from your savings or other accounts directly into your RRSP. Not only will that give your savings more time to grow tax-free – which leads to a bigger nest egg down the road --  but you won’t have to worry about missing the contribution deadline next year.

Contact Us – We’re Here to Help!

Getting on track with your RRSPs is easier than you imagine. Call our friendly Financial Advisors today or visit your local branch for more information. We’re here to help!