Saturday, 27 February 2016

RRSP Deadline


The annual deadline for contributing to your RRSP is Monday February 29, 2016. If you still need to make a contribution make sure you get it done ASAP, you never want to be the last person dropping off a cheque at your advisor's office on Monday! 

Isn't the deadline usually March 1st? Yes, it sure is. The actual rule is that you have the first 60 days of the year to contribute for the previous years taxes and since 2016 is a leap year it gets bumped up a day. 

What happens if I'm late? First off, don't be! This really depends on your financial institution, most places should be able to backdate the transaction by a day or two but it can be a hassle. I used to have to do this for client's and it's a bit of a pain. Save everyone some grief and get in there in Monday. 

What if I make contributions the first of every month? March 1st wont count for your 2015 taxes, it'll be for 2016. Just like the above, there's a chance you can get it backdated if you really need to. 

When will I get my contribution receipt? Receipts are usually mailed out to you by your financial institution so if you're only making your contribution on Monday you may have to wait a couple of weeks to get the slip in the mail. Another good reason not to wait until the last minute ;) PS. Don't be the person that contributes on the last day and then calls a few days later wondering where their receipt is...that makes us financial folks a little crazy. 

Any other questions? Feel free to post them in the comments and happy RRSP season :) 

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