If you haven’t yet contributed to your RRSP in 2024, it’s not too late. You can contribute up to the first 60 days of the following year. Thus, the RRSP contribution deadline for 2024 is March 1st, 2025. This article reiterates the importance of investing in RRSPs as part of your retirement planning. But also, your contribution room, the contribution limit determined by the Canada Revenue Agency (CRA), and much more.
The Registered Retirement Savings Plan (RRSP) is a savings plan designed specifically for financial retirement planning. First and foremost, it allows you to save tax-free. But it also allows you to reduce your taxable income and obtain a tax refund. Each year, you can contribute a maximum amount to your RRSP, based on your contribution room. The RRSP contribution deadline for 2024 is March 1st, 2025.
There are many advantages to using RRSPs for retirement savings, including:
Your maximum RRSP contribution for 2024 is 18% of your previous year’s eligible income, up to the annual limit set by CRA ($31,560 in 2024). To this must be added your unused deductions from previous years. However, excess contributions (if any) and company pension plan contributions reduce your contribution room (due to the pension adjustment).
The annual RRSP contribution limit is determined by the Canada Revenue Agency (CRA). It is increased each year. The RRSP contribution limit for 2024 is $31,560.
Here are the contribution limits for the 5 most recent years:
To find out your RRSP contribution room for 2024, consult your most recent Notice of Assessment. Alternatively, you can check “My Account for Individuals” on the Canada Revenue Agency (CRA) website.
February 29th, 2024 was the deadline to contribute to your RRSP for the year 2023. For the 2024 taxation year, the deadline to contribute to your RRSP is March 1st, 2025.
You can open an RRSP by making an appointment with the financial advisor at your bank, credit union, insurance company or trust company. But you may decide to open an RRSP account with a robo-advisor. The best-known are:
If you prefer to manage your investments yourself, you can open an RRSP account on an online brokerage platform:
An RRSP is a savings plan in which you can invest:
However, the investments you make should always respect your investor profile. If you don’t already know your profile, use a tool like the one provided by the Autorité des marchés financiers (AMF).
In short, contributing to your RRSP to plan your retirement is essential. If you haven’t yet contributed to your RRSP in 2024, it’s not too late. The RRSP contribution deadline for 2024 is March 1, 2025.
An RRSP is a registered plan that lets you save money tax-free. It also allows you to reduce your taxable income and obtain a tax refund. When you retire, you can withdraw funds from your RRSP (or RRIF).
You can contribute to your RRSP no later than the first 60 days of the following year. For example, the deadline to contribute to your RRSP for 2024 is March 1st, 2025.
The maximum you can contribute to your RRSP is 18% of your previous year’s eligible earnings, up to the annual limit set by the CRA ($31,560 in 2024). To this must be added your unused contribution room from previous years.
The maximum amount you can contribute to your TFSA in 2024 is $7,000, plus your unused contribution room from previous years (if any).
Savings are here:
