Ten RRSP questions answered
How much should you have in your account?
Should you do options trading?
Get rich quick or risky business? Options trading is accessible but not for everyone.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
The MoneySense Find a Qualified Advisor Tool
Presented By
Financial Planning Association of Canada
Russ Dyck financial advisor
Meet Russ Dyck, a Certified Financial Planner and founder of Finovo.
What does Trump’s election mean for the Canadian economy?
The former U.S. president’s second election victory sparks concerns over a ripple effect on the Canadian economy.
The crypto markets’ response to the U.S. election results
Trump win ignites crypto frenzy that sends bitcoin to a record high.
Why are Canadians still frustrated with the economy?
Inflation is down, wages are up. But the economic recovery has been uneven, with “two contradictory trends” shaping Canadians’...
CCB payment dates 2024 and 2025, and more to know about the Canada Child Benefit
Parents, here are the CCB payment dates for 2024 and 2025, along with how much you can expect to...
OAS payment dates in 2024 and 2025, and more to know about Old Age Security
Here’s how Canada’s Old Age Security pension works, who’s eligible for OAS, when you can start receiving OAS, and...
CPP payment dates in 2024 and 2025, and more to know about the Canada Pension Plan
Here’s how Canada’s retirement pension plan works, who’s eligible for CPP, when you can start receiving CPP, and CPP...
How to report foreign income in Canada
Canadians have reporting requirements for foreign assets, income and tax paid. Here’s how to claim each of these on...
Hi,
If there’s a room of 100000 in an RRSP, can we contribute all in a year? Or we can only deposit a maximum of 26000 only. THanks.
If you mean that you have a $100,000 of unused RRSP contribution room, then the answer is no you are not limited to putting in the yearly maximum. You could put in the full amount depending on your income, but beware of the AMT tax rules.
On the other hand, you may want to spread the unused room over more than one year so the tax rate of savings (tax rebate) on the income you are getting the deduction for is at the higher rates of tax.
By way of example if your income was 150k+, you may not want to take 100k of deductions all in one year. Instead, spreading it out over two or three years may allow you to save taxes at 53% or 43% instead of 31% or lower tax table rates. The difference in planning and being patient is you could easily save over $20,000 in taxes.
Generally speaking, if you are working with a CFP, CPA or R.F.P. it pays to get professional advice, as the ideas can be far greater than the cost.
Good luck!
Can I buy RRSPs March 1, 2021 using my room from 2020 income and apply when completing my 2020 return?
Thanks for the question. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.