RRSP deadline

March 1st is this year’s RRSP deadline. For those who have not contributed yet, only 2 more days left. It is always a good idea to spread out your contributions throughout the year. Most financial institutions offer Systematic Purchase Plan which can be done weekly, monthly, quarterly, semi-annually and annually and you may be able to have your own custom-made options. Do not forget the Maximum Annual RRSP Contribution Limit. Maximum Annual Limit = Any portion of prior year’s unused contribution limit + 18% prior year’s earned income (to a maximum for that tax year as below) – the taxpayer’s past service pension adjustment for the current year (such as contributions made into a RPP).

Contribution Limit 
2003    $14,500
2004    $15,500
2005    $16,500
2006    $18,000
2007    $19,000
2008    $20,000
2009    $21,000
2010    $22,000
2011    indexed*

*Starting 2001, the limits will be indexed for inflation using the Industrial Aggregate average wages and salaries in Canada.