Should I Make One Last RRSP Contribution?

If you are 71 years of age and have RRSP contribution room, consider making one final RRSP contribution - particularly if you expect to be in a lower tax bracket in future years.  RRSP contributions are generally not permitted for RRSP account holders who are older than 71, so this may be your last opportunity for a large tax deduction in one year.

If you are younger than 71, you can continue to contribute to your RRSP until the end of the year you reach age 71.  The earlier contributions are made, the longer RRSP assets can grow tax-deferred.

If you are older than 71, have unused RRSP contribution room and have a spouse or common-law partner who is 71 years of age or younger, consider contributing to a spousal RRSP.  Contributions to a spousal RRSP will create a tax deduction on your tax return.  As long as withdrawals occur three years after your contribution is made, you can reduce your household tax bill through this income-splitting vehicle.

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