RRSP Contribution Deadline

What is RRPS?

An RRSP, or Registered Retirement Savings Plan, is a tax-advantaged investment account in Canada designed to facilitate long-term retirement savings. Contributions to an RRSP are tax-deductible, providing tax benefits, while any income generated within the account grows tax-free. By investing the maximum contrubtion limit to your RRSP each year, you are deducuting from your annual income, thus lowering the tax you owe to the government. However, when funds are eventually withdrawn, they are treated as taxable income. By the time you withdraw from your RRSP, it is likely that your annual income will be a lot lower than it was when you initially invested in your RRSP, therefore you will be in a lower tax bracket and will not be taxed at the same rate. RRSPs have annual contribution limits based on income, and individuals have until the beginning of March each year to contribute for the previous tax year, making them a crucial element in Canadian retirement planning. This allows individuals to invest in a variety of assets, such as stocks and bonds, with the goal of building a substantial retirement fund.

Why to Invest in Precious Metals Throught Your RRPS?

Investing in precious metals through your RRSP is a great way to start planning for your future, with the ease of mind of having dedicated professionals at your side every step of the way. This safe and reliable method makes it easy to keep track of your investments, as well as the benefits you will reap post-retirement. As one of the oldest methods of safeguarding wealth, investing in gold and silver protects your investments against market volatility, provides tax benefits, and ensures long-term financial stability. Our professionals can guide you through investing in precious metals with your RRSP. 

Keeping track of the rules and regulations for different types of investment plans and accounts can be daunting when done without the help of professionals. Sprott Money is here to help you find the best way to take charge of your wealth by investing in precious metals through your RRSP, along with answering all your precious metals related questions. 

What is an RRSP Contribution Deadline? 

A contribution deadline is the last day of the tax-year in which you can make contributions to your RRSP. This date is subject to change annually. For the 2023 tax year, the deadline to make contributions to your RRSP is Thursday, February 29th, 2024.  Besides the yearly contribution deadline, your RRSP is also subject to a final contribution deadline. The final time an investor can withdraw from their RRSP is December 31st of the year they turn 71 years of age, from there they must withdraw the entire funds, convert to a RRIF or use it to purchase an annuity.

What Happens if You Miss the Deadline? 

Meeting the deadline is important because it allows you to maximize your tax returns, which is the main benefit of an RRSP. If you miss the deadline, you'll have to wait an extra year to get your tax refund, missing out on potential growth. Any unused contribution room rolls over to the next year, increasing your limit. The deadline matters only if you want to apply the contributions to your taxes in the current year. There is no penalty to your account if you do not make contributions to your RRSP by the annual deadline. 

Investing in a Registered Retirement Savings Plan (RSSP) offers a tax-advantaged approach to securing financial stability during post-retirement years. Precious metals are an exceptional way to invest in RRSPs due to their resilience as stores of value and inflation hedges. Incorporating precious metals investments into your RRSP works to diversify portfolios and mitigate risks during economic uncertainties. Sprott Money facilitates this process, providing guidance and access to self-directed precious metals RRSP accounts via Questrade, always ensuring compliance with the required CRA regulations. 

Find out how to incorporate precious metals into your retirement portfolio with Sprott Money. To get started today, contact us at 1.888.861.0775.