The deadline for contributing to a registered retirement savings plan is fast approaching! To be deductible for the 2017 taxation year, the last day for contributions is March 1, 2018. To determine your allowable RRSP deduction limit for 2017, please refer to your most recent Notice of Assessment received from the Canada Revenue Agency (CRA) following the processing of your 2016 income tax return.
An RRSP is a tax-deferred savings account designed to help you maximize your retirement savings. Contributions that you make to an RRSP are tax-deductible, which will help reduce your income taxes. In addition, any investment income earned within an RRSP is tax-sheltered as long as it remains in the account. Taxes are payable only when funds are withdrawn, at which time you may be in a lower tax bracket, making contributions to an RRSP a powerful way to save for your retirement.
You may over-contribute up to a cumulative lifetime total of $2,000 to your RRSP without incurring any penalty. Please note, however, that such contributions are not tax-deductible and any contribution in excess of the $2,000 limit is subject to a penalty tax equal to 1% per month by the Canada Revenue Agency.
At AMSC, we have established savings programs, including group RRSPs, which combine the ease and convenience of payroll deductions with low fund management fees. For more information, please contact our Retirement Services team at firstname.lastname@example.org.