RRSP Deadline - March 1
Happy snowy Monday everyone! Or if you're in Moose Jaw it's snowy, and COLD. I guess we should expect this kind of weather in January in Saskatchewan. It doesn't make it any easier though...
If you are still able to contribute to an RRSP, you are able to do so for the 2016 tax year until March 1, 2017. If you're unsure of whether or not you should be contributing to an RRSP to defer taxes, I can help you make that decision along with the help of your accountant or bookkeeper (if you have one). Some clients ask me about whether they should be contributing to an RRSP or to a Tax Free Savings Account (TFSA). It really all depends on your situation and your expectations of your money into retirement. Each has it's place and each account can serve a different purpose.
If you tend to get a large refund back from CRA, you may either be contributing 'too much' to an RRSP or having significant taxes deducted from your pay cheques. Large refunds mean that CRA has been using your money for the last year and you get it back in the form of a refund. You may be better off contributing to a TFSA if this is your situation. Remember, contributing to an RRSP DEFERS taxes; it doesn't avoid them.
Breaking even or close to it, is the best case scenario when it comes to your tax return. CRA doesn't owe you anything and you don't owe CRA anything.
If you'd like to review your tax situation and contributing to an RRSP or TFSA or both, I can help. Let's set up a time to meet.
I look forward to seeing you!