Be an early bird and contribute to your RRSP for the 2018 tax year
VANCOUVER, BC–(Marketwired – March 01, 2018) – Today is the last day to contribute to your RRSP for the 2017 tax year. If you don’t have time to go to the bank or make an online transfer, consider making your 2018 RRSP contributions tomorrow. There are benefits to contributing to your RRSP early, and here are some tips from the Chartered Professional Accountants of British Columbia’s (CPABC) to help you maximize the benefits of your RRSP contributions for the 2018 tax year:
- Contribute early to an RRSP
Contributing to your RRSP at the beginning of the year starts the tax-free compounding of earnings within the RRSP earlier, meaning you have the opportunity to save more in your RRSP account by putting money in early. The deadline for your RRSP contributions for the 2018 tax year is March 1, 2019. Don’t wait till the last minute to make your RRSP contributions!
- Make monthly contributions to your RRSP
Take advantage of tax-free compounding of earnings by making monthly contributions to your RRSP versus a lump sum contribution just before the RRSP contribution deadline. However, make sure you don’t over contribute to your RRSP. Your 2018 RRSP deduction limit will be reported on your 2018 Notice of Assessment.
- Save your RRSP tax deductions for the future
You can make an RRSP and without claiming a tax deduction in the year you make the contribution, if you think your marginal tax rate will be higher in the future. You can carry forward for those deductions without penalty if the RRSP contribution amount that has yet to be deducted is less than the amount of your RRSP deduction limit plus $2,000. Carrying forward your tax deductions could provide you with some tax deductions in the future.
Learn how to maximize your RRSP benefits with CPABC’s RRSP and Tax Tips at rrspandtaxtips.com.
NOTE TO JOURNALISTS: Local CPAs are available for interview. Infographic is available for reprint.
Please credit Chartered Professional Accountants of British Columbia (CPABC) for use of the content and include the following disclaimer: Tax rules relating to these tips are complex. This is not intended as tax advice and you should not make tax decisions based solely on the information presented in these tips. You should seek the advice of a chartered professional accountant before implementing a tax plan or taking a tax filing position.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for more than 35,000 CPA members and almost 6,000 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.
For media inquiries:
Public Affairs Manager