The deadline for making a Registered Retirement Savings Plan (RRSP) contribution for the 2018 tax year is fast approaching.
If you’re a last-minute investor considering putting money into a plan you have until Friday, March. 1.
The government does impose strict caps on how much money Canadians can save in their RRSPs.
Revenue Canada allows contributions limited by your unused RRSP amount, plus 18% of your taxable income or a maximum contribution of $26,010 for the 2019 tax year.
Look for your unused contribution room in the notice of assessment from last year. That’s the file the Canada Revenue Agency sends every Canadian after it has assessed their tax returns.
However, experts warn against making quick decisions just because the deadline is approaching.
In order to potentially contribute to an RRSP, investors need to have had earned employment income and filed your taxes.
Watch the video below for a quick refresher on whether an RRSP or a TFSA is the correct option for you to invest in.
