Eight RRSP myths, misunderstandings and misconceptions
BNN Bloomberg
After two years of pandemic lockdowns, Canadians appear to be refocusing their attention on their financial futures.
After two years of pandemic lockdowns, Canadians appear to be refocusing their attention on their financial futures.
A recent poll from Royal Bank of Canada suggested that 53 per cent of us are making our registered retirement savings plans a priority ahead of the March 1 contribution deadline. That’s up from 46 per cent at this time last year.
At last count, 70 per cent of Canadian tax filers have an RRSP; a testimony to its success as a retirement savings tool. However, there are many myths, misunderstandings and misconceptions about RRSPs. Here are a few common ones:
1. You need to make your RRSP contribution before March 1
Wrong. You only need to make your contribution before March 1 if you want to deduct the full amount from your 2021 taxable income. You can contribute any time and claim it in future years.
2. You need to invest your contribution before March 1 to claim it for 2021
