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Why should you buy an RRSP? One very simple fact, when you buy an RRSP, you take money out of one of your pockets and put it in another one of your pockets, and most importantly, YOU KEEP IT OUT OF THE GOVERNMENT’S POCKET!

Money earned inside the RRSP is tax free until you take it out.

For every $1,000 of RRSP purchased, you reduce taxes by $300*

The government keeps track of how much RRSP you can contribute every year, and sends you a statement when you file your tax return.
You have until March 1 of the following year to make your contribution-that means you can calculate your taxes and decide how much or how little you want to give to the government. (How often do you get to do that?)

The government increases your contribution limits: The max amount is 18% of your earned income up to an annual dollar limit. In 2008 it was upped from $19K to $20K and it has gone up by $1K a year since then.

*subject to certain terms and conditions.

Tax Tips

Many Canadians are looking abroad when adopting a child but it can be an expensive process. However, there is now some tax relief for adopting parents. You may claim a non-refundable tax credit for expenses relating to the adoption of a child up to a maximum of $10,445. The credit can only be claimed in the year the adoption is finalized but may include eligible expenses from previous years.

Turning 65 doesnít mean you canít contribute into an RRSP. The rules do allow you to contribute to your own RRSP up until the end of the year in which you turn 71, or to your spouse or common-law partner's RRSP. But remember, you will need available contribution room.

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