Planning an RRSP Contribution for the 2017 Tax Year?
Time is running out! The deadline for contributing to an RRSP for the 2017 tax year is March 1, 2018.
Contributing to your RRSP account allows you to maximize your 2017 income by giving you the ability to reduce your payable taxes and potentially receive a tax refund in the process.
Here are some the additional benefits of contributing to an RRSP:
- They are tax deductible. Tax-deductible contributions mean more of your income is available for current needs, even while you’re saving for the future.
- Tax on investment growth is deferred. Tax-deferred investment growth means that you don’t pay any tax on the money you contribute to your RRSP, allowing you to keep your money working for you longer. It’s true that the money in your RRSP will eventually be taxed when you withdraw it; however, because most people earn less income in their retirement years, those funds are typically taxed at a lower rate when withdrawn. Another major benefit to RRSPs is that they allow your contributions to grow tax-free. This means you don’t have to pay capital gains taxes when you sell stocks or funds at a profit, and you don’t have to pay tax on dividends, or interest, which you receive in cash.
If you have any questions about the deadline—or to find out how to make a lump sum deposit into your account—please reach out to your consultant.