Here are some tips that will give a boost to your RRSP
- Contribute to the maximum amount allowable for 2012 by March 1, 2013
- Start making your 2013 contributions as early as possible in the new year to take advantage of tax-free interest compounding and income growth
- Make an over-contribution for the current year of up to $2,000 without penalty. The amount won't be deductible, but it will start to earn tax-free income sooner. A deduction for the overpayment can be applied to a future year.
- Establish a spousal RRSP to split future income
Remember too, if you turn 71 this year, you must convert your RRSP to either a Registered Retirement Income Fund (RRIF) or an annuity by December 31st at the latest. If you miss this deadline, CRA will include the entire amount of your RRSP in your taxable income this year.
Let FBC Financial & Estate Planning Help You With Your RRSP
We want to help you make the best decisions when it comes to either investing in an RRSP or in converting your RRSP to retirement income. Contact FBC Financial & Estate Planning today to speak with one of the experts in FBC's financial services division. Not only can they provide retirement plan advice - they can also arrange for your RRSP contribution.