RRSP Season 2016
This year the final official date for making RRSP deposits to be deducted in 2016 is March 1st.
You may recall this is a 60 day limit. Last year the deadline was February 29th because it was a leap year
For those with Manulife accounts you have until March 1st.
For those with Industrial Alliance Accounts we would need your deposit cheques no later than Wednesday February 22nd.
These dates are very important. A missed date means a missed 2016 deduction.
Contributions are limited to the contribution room, which corresponds to 18% of the previous year's eligible earned income without exceeding the annual limit. This represents $25,370 for 2016 and $26,010 for 2017.
It is possible to carry over contribution from one year to another. See your TOP UP Room on your last year's personal Tax Assessment
There is a penalty of 1% per month on excess contributions over $2,000.
Excess contributions cannot exceed $2,000 cumulatively.
The contribution deadline for 2016 is March 1, 2017.
Contributions for 2017 can be made as ofJanuary 1.
You can use contribution made in the first 60 days as a deduction in EITHER 2016 OR for 2017.
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Harrison Robbins, BBA, FCPA, FCA