What to Do If You've Missed the RRSP Deadline

VANCOUVER, BC--(Marketwired - March 10, 2017) - Did you forget to contribute to your RRSP for the 2016 tax year? You're not alone. Often, people are rushing to make the RRSP contribution deadline for the tax year and some end up missing the deadline. The deadline for the 2016 tax year was March 1, 2017, so any RRSP contribution you make going forward will be for the 2017 tax year. The Chartered Professional Accountants of British Columbia's (CPABC) RRSP tips aim to help you maximize the benefits of your RRSP contributions for the 2017 tax year:

1. Contribute early to an RRSP
   The deadline for your RRSP contributions for the 2017 tax year is February 28, 2018. Don't wait till then to make your RRSP contributions! Contributing to your RRSP at the beginning of the year starts the tax-free compounding of earnings within the RRSP earlier.

2. Contribute to your RRSP monthly
   Take advantage of tax-free compounding of earnings by making monthly contributions to your RRSP versus a lump sum contribution just before the RRSP contribution deadline. However, make sure you don't over contribute to your RRSP. Your 2017 RRSP deduction limit will be reported on your 2016 Notice of Assessment or you can also calculate it using the following formula:

YOUR UNUSED RRSP AMOUNT + 18 PER CENT OF YOUR 2016 INCOME - PENSION ADJUSTMENT = YOUR 2017 RRSP LIMIT

3. Save your RRSP tax deductions for the future
   You can make an RRSP and not claim a tax deduction in the year you make the contribution, if you think your marginal tax rate will be higher in the future. If your un-deducted RRSP contributions do not exceed your RRSP deduction limit plus $2,000, they can be carried forward indefinitely for deduction in future years, without penalty. This could provide you with some tax deductions in the future.

Learn how to maximize your RRSP benefits with CPABC's RRSP and Tax Tips at www.rrspandtaxtips.com.

NOTE TO JOURNALISTS: Local CPAs are available for interview. Infographic is available for reprint.

Please credit Chartered Professional Accountants of British Columbia (CPABC) for use of the content and include the following disclaimer: Tax rules relating to these RRSP tips are complex. This is not intended as tax advice and you should not make tax decisions based solely on the information presented in these tips. You should seek the advice of a chartered professional accountant before implementing a tax plan or taking a tax filing position.

About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for almost 35,000 CPA members and 5,500 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.