Disclosure: This is a partnered post with Tangerine Bank. However, all opinions and views on this post are 100% my own.
RRSP Season is here. If you have taken the time to put away money into your RRSP on a regular basis- good for you! Give yourself a pat on the back. Putting away money on a monthly basis is very smart, and a great way to accumulate savings that you can invest. If you have not, you might want to consider contributing to your RRSP before the deadline.
Do you know the RRSP contribution deadline? It is usually the end of February or the first few days of March. This year the contribution deadline date is March 1, 2021.
Where can you find your RRSP deduction limit?
How much can you contribute? Do you have any have room in your RRSP?
You can find your RRSP deduction limit by going to:
- Form T1028, Your RRSP Information for 2020
- CRA may send you a Form T1028 if there are any changes to your RRSP deduction limit since your last assessment.
- My Account
- MyCRA mobile app
- Tax information Phone Service (TIPS)
- the RRSP Deduction Limit Statement, on your latest notice of assessment or notice of reassessment (see image below)
Depending on your age, you might consider a TFSA instead. A TFSA is another investment tool created by the Government of Canada to help Canadians save.
The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not tax deductible.
If you were the age of 19 in 2009, and you have not contributed to your TFSA, you can invest $75,500.
RRSPs vs TFSAs?
Not sure which you should use? You can have both. It depends on your life stage. Not sure if you should invest in a RRSP or TFSA? Here is a great article by Joe Snyder on the Tangerine Blog.
Invest Savvy Twitter Chat
Want to learn more about investing? Join us at the Tangerine Bank Invest Savvy Twitter Chat. Brian Ong from Tangerine Bank investment team will be on hand to answer your investing questions.
Date: Thursday, February 18, 2021
Time: 8:00pm ET – 9:00pm ET
Host: Tangerine Bank @TangerineBank
Guest: Brian Ong, Tangerine Bank Investment Team
Moderator: ShesConnected @ShesConnected
Rules & Regs: Click here to view
Prizing: $500 in Prizing
Anyone can participate in the Tangerine Bank #InvestSavvy Twitter Chat, however, only Canadians excluding those in the province of Quebec can answer questions.
Questions that will be asked during the Twitter Chat
Q2. Do you feel that you need to have a lot of money before you can start investing? #InvestSavvy
Q1. Do you currently have investments? If not, what’s preventing you from investing? #InvestSavvy
Q3. How would you describe your knowledge level about investing?#InvestSavvy
Q4. If you’re an investor, how hands-on are you with them? Do you have a financial advisor? #InvestSavvy
Q5. If you have investments, do you know how much you’re paying in fees? #InvestSavvy
Q6. Do you understand the differences between an RRSP/RSP and a TFSA? #InvestSavvy
Q7. Do you make regular investment contributions? #InvestSavvy
Q8. Do you have any pointers on investing you’d like to share? #InvestSavvy
About Tangerine Bank
As you may have noticed, Tangerine isn’t like a typical bank. For one thing, they don’t have expensive brick-and-mortar branches, which means they can pass those savings on to you. One way they do this is by paying you more interest on your money without charging you unfair fees. But that’s just the start.
Life is busy and complicated enough, right? No one wants their banking to be one more complicated thing to worry about. Your money should work as hard as you do, and you shouldn’t have to work hard to make that happen. It’s why they make it simple to save, simple to understand, and simple to do all of your everyday banking with us. It’s what they call Forward Banking.
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