Weekly Tax Tips
Make a Contribution to Your RRSP for 2009
08 Jan 2010
Don't forget, in order for your registered retirement savings plan (RRSP) contribution to be deductible for 2009, the last day your contribution can be made is March 1, 2010.
Your contribution limit for 2009 is 18% of your 2008 earned income (to a maximum of $21,000) less the value of any benefits that accrued to you in 2008 as a member of a Registered Pension Plan or a Deferred Profit Sharing Plan (your Pension Adjustment — PA). Your PA was reported by your employer on your 2008 T4 slip. Also, your 2008 Notice of Assessment should include the CRA’s calculation of your 2009 contribution limit, with any unused amounts carried forward from previous years. This information is also available on the CRA’s “My Account” service.
If you don’t have the necessary funds, consider borrowing to make the contribution. Although interest on an RRSP loan is not deductible, borrowing may still make sense if you can repay the loan quickly. If you receive a tax refund, you can apply it to the loan to reduce the balance outstanding.
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 8 Jan 2010.
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