Weekly Tax Tips
Carefully consider RRSP contributions
Date: 16 Sep 2011
Particularly for individuals in the upper income tax brackets, Registered Retirement Savings Plans (RRSPs) are a powerful tool to save for your retirement. However, if cash is tight or your income may decline in 2011, then you should carefully consider how much to contribute. Remember that if you need to withdraw funds from your RRSP before retirement, the withdrawal will be taxed and the contribution room used for the original contribution will be effectively lost.
For more information on RRSPs, click here to read our tax bulletin Answering Your RRSP Questions.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 16 Sep 2011.
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