Monday, 3 March 2014

RRSP Contribution Deadline TONIGHT 11:59PM

You did it again.You waited  until the VERY LAST opportunity to contribute to your RRSP. You want to do the right thing and save for your retirement but for some reason you failed to make it happen in the past 364 days. Don't beat yourself up you're not a alone. A new poll by CIBC finds almost 1/3 of eligible Canadians  wait until the last day to make a RRSP contribution. There is still time to make it happen but you will have to hustle. The deadline is tonight at 11:59 PM.  If you're still expecting to make a contribution here's what you need to know.

Lower tax bracket
Make your contribution count. You should have all your tax receipts by now. Before you make your contribution add up how much you made last year and how much you contributed to your RRSP so far. Check the CRA website to see how far that number is from the next tax bracket. By contributing enough to lower your income to the next tax bracket, you could see a significant reduction in the amount of tax you pay.

Go into the bank
If you're making a contribution today your best option is to make it in person. Find the closest branch and go there. Online, as reliable as it is, may be a risk if you're really depending on this contribution to go in. Most financial institutions and banks have extra staff on hand and are operating at extended hours.Call ahead to check when your bank is open if you are planning to go in late.

Do not buy any investments
I can't stress enough how important it is not to make investments in a time of haste.  The most important point today is to get the money into your RRSP. The money can sit in cash until you make the decision to invest it. Take time to do your our research and consult with a qualified and recommended financial adviser.

Try to go before 5 pm

You've already left this decision to the last day, but don't stress yourself out more by waiting until the last minute. Avoid long line ups and visit the bank as early as you can. Going early will save you a lot of time.

If you're doing online
If you must make your contribution online. Call your financial institution first to make sure the contribution will make it in before the 11:59 pm deadline.  If you can, keep the customer service representative on the line while you make the money transfer. A good tip is to use your bank account at the same institution to transfer the money.

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