Top up your RRSPs. Maximize your savings.
Once again, we are fast approaching the RRSP season deadline. Monday, February 29, 2016 is the last day you can make tax-efficient RRSP contributions for 2015.
This is a great opportunity for you to review your retirement investment strategy with your Investment Advisor. Together, you can:
Contact your Investment Advisor if you would like to receive our complimentary report entitled “RRSP Reference Guide” that contains information on key dates, contribution limits and strategies you can utilize within your RRSP.
- Calculate your contribution limit. The maximum for 2015 is $24,930. For reference, your current allowable contribution limit can be found on your latest notice of assessment from the Canada Revenue Agency. If you did not use your entire RRSP contribution limit for the years 1991 to 2014, you can carry forward unused amounts to 2015. The contribution limit for 2014 was $$24,270 and for 2016 is $25,370.
- Decide how much to contribute and how to set up regular, automatic payments to an RRSP if you haven’t already done so.
- Contribute to other tax-efficient plans such as a Tax-Free Savings Account (TFSA) or Registered Education Savings Plan (RESP). The contribution limit for TFSAs in 2015 was $10,000. Under proposed legislation, starting January 1, 2016, the annual TFSA dollar limit for 2016 will decrease from $10,000 to $5,500.
- Consider whether a US dollar registered account would benefit your circumstances. All registered plans are now available in USD with the exception of RESP accounts.