2013 RRSP Deadline (for the 2012 Tax Year) is on March 01, 2013
Therefore, your RRSP contributions must be made before the RRSP deadline for the 2012 tax year (March 01, 2013).
2012 maximum RRSP contribution limit: $22,970
If you did not utilize your full RRSP contribution limit from 1991 to 2011 you are able to carry forward the unutilized amount to 2012. Therefore your RRSP contribution limit for 2012 may be higher than the maximum of $22,970.
What is an RRSP?
A Registered Retirement Savings Plan (RRSP) – A retirement investment plan registered with the Canada Revenue Agency which allows an individual or their spouse to accumulate savings and earnings for retirement on a tax-sheltered basis. These investments can include stocks, mutual funds, etc.
Deductible RRSP contributions can be used as a tax minimization strategy to reduce your personal income taxes. Any income earned in the RRSP are tax exempt while the funds remain in the plan. Once an individual withdraws funds from their RRSP they will then pay tax at their marginal tax rate. This allows for tax deferral usually until a person retires.
SRJ Chartered Accountants Professional Corporation are Chartered Accountants in Toronto and specialize in helping individuals reduce taxes and tax planning. For more information contact us at firstname.lastname@example.org or 416-898-4235.