Maxing out your RRSP IS always a GOOD IDEA…ESPECIALLY THIS YEAR!
The recent federal tax cuts, with more to follow in the coming years, make it more beneficial than ever to maximize your RRSP contribution this year (and top up any contribution room left from previous years).
Falling tax rates means that the income you earn this year will be taxed at a higher rate than it will in subsequent years. As a result, your 2001 RRSP contribution will yield a bigger tax deduction than a similar contribution made next year.
If you are like many Canadians who have leftover contribution room in their RRSPs, now may be the best time to top-up your RRSP portfolio to its maximum limit (perhaps even borrowing to do so).
To find out your allowable RRSP contribution limit, consult your Year 2000 Notice of Assessment or call Revenue Canada’s TIPS service at 983-3872.