While staying safe during the festive season is top of mind for most of us right now, it’s worth noting that the Registered Retirement Savings Plan (RRSP) contribution deadline is just around the corner. The RRSP contribution deadline for the 2020 tax year is March 1, 2021. There are just a few short months left to make a contribution for 2020.
Contributing annually to an RRSP will enable you to reduce the tax you pay on your current employment income. As well as being tax-deductible, annual contributions to an RRSP will grow, tax-free, keeping you ahead of inflation and maintaining valuable purchasing power for your retirement years.
All RRSPs share the same basic features of tax deductibility and tax deferral, but they vary in terms of flexibility and control of investments, risk and return.
To learn more about RRSPs, visit our RRSP vs TFSA blog here.
There exists a wide range of investment choices for all types of investors — from the most aggressive (who will buy mutual funds invested exclusively in equities) to those primarily interested in guaranteeing their principal (who might lean towards fixed-income plans), to those beginning the process of building an investment base.
If you’ve got questions about RRSPs, we’d be happy to help you. Book a virtual appointment to discuss your RRSP options HERE.