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Seven Essential Facts about Making Your RRSP Contribution
Knowing these facts will save taxpayers time and money
1. The deadline for making an RRSP contribution for the 2010 tax year is March 1, 2011.
2. RRSP contributions are calculated as 18% of earned income to a maximum of $22,000 for 2010 plus any unused contribution room from previous years. Your 2010 RRSP Deduction Limit (RRSP Limit) is listed at the bottom of your 2009 Notice of Assessment from Canada Revenue Agency (CRA).
3. You can contact CRA to find out your RRSP Limit: telephone 1-800-267-6999 or check online at www.cra-arc.gc.ca/
4. CRA levies a penalty of 1% per month on RRSP contributions above the lifetime over-contribution limit of $2,000.
5. Contributing to an RRSP for your spouse may deliver tax benefits if you expect your spouse to have a lower retirement income than you.
6. You can transfer RRSPs between financial institutions without paying tax.
7. If you borrow to make an RRSP contribution, the loan interest is not tax deductible.
For more information or to arrange an interview, please contact:
Canada’s Independent Voice on Personal Finance
Personal finance speaker and author of No Hype–The Straight Goods on Investing Your Money
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Gail Bebee, Canada’s independent voice on personal finance, is dedicated to helping Canadians better manage their money. She wrote No Hype – The Straight Goods on Investing Your Money to fill the need for a book on investing basics for Canadians from the viewpoint of a savvy financial industry outsider. It’s the book she couldn’t find when she decided to take control of her money. Ms. Bebee writes a personal finance column for Morningstar Canada and contributes articles to such publications as GlobeInvestor. She teaches a popular evening course on Investment Planning for Toronto District School Board and speaks frequently on personal finance at corporate, association and community events. Ms. Bebee's academic background includes undergraduate studies in biology and a Master's in environmental engineering. She is an honours graduate of the Canadian Securities Course.