RRSP Deadline for the 2016 Income Tax Year is March 1, 2017

by | Jan 17, 2017 | Uncategorized

Here is an excellent article from Greg Gillespie of Gillespie Adams, Greg is a long standing member of Aurora-Business.com.

RRSP Deadline for the 2016 Income Tax Year is March 1, 2017 There are limits on your tax-deductible RRSP contributions and any contributions above these limits may incur penalties. The limit for the current year is 18% of the previous year’s income up to a maximum amount of $25,370.  CRA provides Canadians with “T.I.P.S.” – a Tax Information Phone Service that you can use to confirm your 2016 RRSP deduction limit by phoning 1-800-267-6999.  Alternatively you can visit:  http://www.cra-arc.gc.ca/myaccount/ 

Log in with your e-pass or follow the instructions to obtain one.  T.I.P.S. is available from 6 a.m. to 3 pm. (Eastern time) seven days a week.  When you call the service you should have your 2015 tax return handy – you will be asked to provide your social insurance number, birth date, and your 2015 total income (from line 150 of your 2015 (tax return).

You can also find your 2016 RRSP contribution limit on the Notice of Assessment from your 2015 income tax return. This is something you should get in the habit of looking for every year, as CRAs record of your RRSP contribution limit may be different than your copy of your 2015 income tax return due to adjustments made by CRA.

If you are a member of a pension plan, pay particular attention to past service pension adjustments (PSPAs) and pension adjustment reversals (PARs) related to 2016. This will change your RRSP limit. If this is the case, you should have received a recalculation of your 2016 deduction limit from the

Planning tip – Contribute early
This will give your money more time to grow tax free. Starting a PAC (pre-authorized chequing) plan is one option of letting you invest regularly. This will also help you to practice dollar cost averaging in your RRSP portfolio.

Planning tip – Consider borrowing to invest
Depending upon your particular situation, an RRSP loan may be an attractive way to help you catch up on your unused contribution room and these loans are usually offered at or near the prime interest rate.

Planning tip – Home Buyers Plan
If you have made any withdrawals under this plan, remember that this must be repaid over 15 years.  For more details on the CRA Home Buyers Plan CLICK HERE

For more information about Greg and Gillespie Adams FOLLOW THIS LINK