Every year you’re allowed to contribute up to a maximum amount to your RRSP, where how much you should put into your RRSP account, based on your income, your living place and tax rates. You should avail this opportunity before the deadline to receive a maximum income tax refund and get the most out of your RRSP account.
RRSP Deadline Canada 2012
For RRSP contributions deadline in Canada for the Tax Year 2011 is February 29th, 2012! You may have been already contributing it throughout a year while deducting your paycheque. Or perhaps you are new and never been contributed to RRSP, but willing to put some money towards it before the RRSP deadline. If you are unaware of your RRSP situation is, you can try the RRSP Calculator before the deadline to see how much savings and refunds you can get while putting money into your RRSPs this year. The RRSP contribution limit for the year 2012 is lower of 18% of your earned income or $22,450.
Why Should You Contribute To RRSP?
Because you are curious about your financial future; Although RRSPs are created with a concept of retirement in which your contribution towards RRSP goes throughout your career history that brings tax benefits, protection and peace of mind. Early adoption of RRSP Contribution and keep it often can help you reach your perfect retirement and goals you have been dreaming of. You will feel secure and confident. Although there is a contribution limit more RRSP contributions mean more money in your pocket.
Your Contribution towards RRSP and using its tax deductions to your advantage is a very simple way to save smartly. As long as your RRSP sits in its account, it’s exempt from taxes, which also means it will continue to increase in value. Like if you withdraw $5000 from your RRSP, that becomes your taxable income. However, if you don’t withdraw it from your RRSP, then it’s not treated as taxable while it can continue to increase in monetary value.