There’s one well known exception to this rule: With registered retirement financial savings plans (RRSPs), Canadians have 60 days after the top of the calendar 12 months to make a contribution for the former tax 12 months. This implies you have got till middle of the night, 11:59 PM ET, on February 29, 2024, to make an RRSP contribution and decrease your taxable source of revenue for the 2023 tax 12 months.

What’s an RRSP? 

An RRSP is a registered financial savings account designed to assist Canadians save for retirement. You’ll dangle money and a variety of investments (together with shares, bonds, exchange-traded price range and assured funding certificate) on your RRSP, and contributions are tax-deductible, that means they scale back your taxable source of revenue.

Investments within an RRSP develop tax-sheltered till they’re withdrawn, at which level the price range are added for your source of revenue and taxed at your marginal tax charge. Generally, the purpose is to withdraw after you retire, when you will be in a decrease tax bracket than whilst you have been making a living. 

What’s the RRSP time limit for 2023? 

Canadians have 60 days after the top of the calendar 12 months to make RRSP contributions against the former tax 12 months. This implies the RRSP time limit for the 2023 tax 12 months is middle of the night, 11:59 PM ET, on February 29, 2024. 

Canadians who flip 71 have till December 31 of the similar 12 months to give a contribution to their RRSP. So, should you became 71 in 2023, you had till December 31, 2023, to give a contribution for your account. Seventy-one may be the age at which you will have to both money out your RRSP, convert it to a registered retirement source of revenue fund (RRIF) or acquire an annuity.

How do RRSP deductions paintings? 

RRSP contributions made between March 1, 2023, and Dec. 31, 2023, will also be deducted out of your taxable source of revenue for the 2023 tax 12 months. 

For those who give a contribution to an RRSP between January 1 and March 1, 2024, you have got two choices: You’ll deduct the ones contributions out of your taxable source of revenue for both the 2023 or 2024 tax 12 months. Both means, you’ll have to document the contributions to your 2023 tax go back, however you’ll be able to make a selection to hold the deductions ahead into the long run. 

Any contributions you are making after this 12 months’s RRSP time limit on February 29 can be reported to your 2024 tax go back. 

When will my RRSP tax slips be to be had?

Monetary establishments in most cases ship out tax paperwork earlier than the top of January. Those tax slips come with RRSP contributions made between January 1 and December 31 of the former 12 months.