Registered Retirement Savings Plan A Registered Retirement Savings Plan is a savings plan that is 'registered' with Canada Revenue Agency (CRA). It allows you to save money for your retirement on a tax-sheltered basis. That means you don't pay tax on the income your investments earn until you withdraw the money from your RRSP. Saving for retirement is an important financial goal. The amount that you are able to save in your working years will affect your quality of life throughout retirement.
2022 Contribution Details and Deadline If you haven’t already made your RRSP contribution, don’t delay. For the 2022 tax year, the allowable RRSP contribution limit is 18% of your earned income up to a maximum of $29,210. The last day to contribute to your RRSP for the 2022 tax year is March 1st, 2023. Please contact our office to make a contribution or mail a cheque to: BMO Nesbitt Burns Attn: Dorfman Hostick Wealth Group 100 King Street West, 42nd Floor Toronto, ON M5X 1H3. Alternatively, you can deposit your contribution directly to your BMO Nesbitt Burns account at any BMO Bank of Montreal branch or through your bank's online banking, telephone banking or ATM service. For further assistance, please do not hesitate to contact our office at your convenience.
Dont' Wait to Make your RRSP Contribution Statistics show that 80 per cent of RRSP owners make their contributions in the last two weeks of February. By doing so, these people effectively lower the value of their RRSPs. As RRSP contribution room is based on your prior years earned income, your current year limit is known on January 1st. A smart strategy is to contribute as early in the year as possible in order to take maximum advantage of the tax deferred growth of an RRSP. For example, if you had contributed on January 1, 2004 rather than wait until March 1, 2005 for the 2004 tax year, the money would be in your RRSP for an additional 14 months. Compounding, especially over a number of years, can have a profound effect on the total value of your RRSP. If you contributed $5,000 on January 1st each year for 30 years and earned an eight per cent return, you would have $57,279 more money in your RRSP than if you make your annual contribution on March 1st of the following year. Don't wait to make your RRSP contribution! Contribute as early as possible and ensure you maximize your contributions each year.