I don't know how many perb members are affected by this but the deadline to deposit funds into your RRSP account, which can be used against income for 2005, is up to and including March 1st.
The most common question is where can I buy RRSP's. And the answer, is you can't buy an RRSP. An RRSP is a trust. You can buy investments which are held in your RRSP but you can't buy an RRSP. Obvious for most, but surpringly not everyone can make this distinction. But these investments can be bought at banks, through financial planners, investment brokers, and through self-directed accounts. ( I may have missed a couple of ways to buy these but anyone reading this should get the idea) If you're close to the deadline and you don't know how to invest the funds for the long term the best thing to do is put the funds in a money market account, or a term deposit or ING or something along those lines., then you can make the investment decisions after the RRSP deadline has passed. This is calling "parking"
The other common question is spousal RRSP's. The amount you can contribute to a spousal RRSP is based on your RRSP contribution limit, not your spouses. She is the owner of the funds held within a spousal RRSP and the contributor gets the tax deduction. If these funds are withdrawn within 3years attribution rules may apply and the person who has to claim the income is the contributor.
Lastly, the RRSP contribution limit is based on an accumulation of unclaimed amounts including the amount for 2005. The 2005 amount is based on your 2004 earned income amount, normally 18% of this amount is your contribution limit for 2005, assuming no carryforward amounts, or pension adjustments. The best place to get this information is on your 2004 Notice of Assessment.
The most common question is where can I buy RRSP's. And the answer, is you can't buy an RRSP. An RRSP is a trust. You can buy investments which are held in your RRSP but you can't buy an RRSP. Obvious for most, but surpringly not everyone can make this distinction. But these investments can be bought at banks, through financial planners, investment brokers, and through self-directed accounts. ( I may have missed a couple of ways to buy these but anyone reading this should get the idea) If you're close to the deadline and you don't know how to invest the funds for the long term the best thing to do is put the funds in a money market account, or a term deposit or ING or something along those lines., then you can make the investment decisions after the RRSP deadline has passed. This is calling "parking"
The other common question is spousal RRSP's. The amount you can contribute to a spousal RRSP is based on your RRSP contribution limit, not your spouses. She is the owner of the funds held within a spousal RRSP and the contributor gets the tax deduction. If these funds are withdrawn within 3years attribution rules may apply and the person who has to claim the income is the contributor.
Lastly, the RRSP contribution limit is based on an accumulation of unclaimed amounts including the amount for 2005. The 2005 amount is based on your 2004 earned income amount, normally 18% of this amount is your contribution limit for 2005, assuming no carryforward amounts, or pension adjustments. The best place to get this information is on your 2004 Notice of Assessment.
