RRSP Deadline March 2, 2020
Written by
Ryan Gubic
Published on
13
Jan 2020
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It is that time of year again, you have the opportunity until March 2, 2020 to still contribute to your RRSP (Registered Retirement Savings Plan) and count towards the previous 2019 tax year.
RRSP annual contribution limit
Your annual RRSP contribution limit is calculated based on 18% of the earned income you reported on your tax return in the previous year, up to a maximum amount stipulated by CRA (The Canada Revenue Agency). The maximum annual contribution for the 2019 tax year is $26,500.
What if I have unused RRSP contribution room from prior years?
Each year you report earned income on your taxes to CRA, RRSP contribution room is created. If do you not contribute the full amount to your RRSP in that year, the RRSP contribution balance carries forward and you can contribute in a future year.
How much can I contribute?
If you have available contribution room from previous years your RRSP contribution limit may be different from the annual limit. You can check your RRSP contribution limit by visiting My Account on the CRA website (link). It is important to not over contribute as generally CRA charges a 1% monthly penalty on contributions that exceed your limit by more than $2000.
When is the deadline for the 2019 tax year?
If you want to make an RRSP contribution for the 2019 tax year you have until March 2, 2020 to do so, after that the contribution would count for the next year.Questions?If you have questions about financial planning in Calgary and wealth management in Calgary or would like to explore your options, connect with us to speak with a financial advisor in Calgary and get the answers you need to achieve your goals.I am
Ryan Gubic is the founder of MRG Wealth Management Inc. operating as MRG Wealth (“MRG”) and is a Portfolio Manager with MRG investments of Aligned Capital Partners Inc. (“ACPI”). The opinions expressed are not necessarily those of MRG, ACPI, or Ryan Gubic. This material is provided for general information and the opinions expressed and information provided herein are subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on the information presented, seek professional financial advice based on your personal circumstances. ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through MRG Investments, an approved trade name of ACPI. Only investment-related products and services are offered through MRG Investments of ACPI and covered by the CIPF. Financial planning and insurance services are provided through MRG. MRG is an independent company separate and distinct from MRG Investments of ACPI. Contact your financial advisor in Calgary or your financial planner in Calgary to discuss.
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