RRSP Contribution Tips: What, When, And How To Contribute

Right now, thinking about Registered Retirement Savings Plans (RRSPs) is likely at the bottom of your list of important things to do. However, with the 2020 contribution deadline looming on March 1, I'd suggest that learning to make the most of your RRSP contributions might be just what the doctor ordered in terms of saving some money for retirement and getting some tax breaks while you do it (and to provide some semblance of normalcy in these days). So here are some tips to get you started.

1. Take full advantage of spousal RRSP

A spousal RRSP is simply an RRSP where you make the contributions, but the plan is in your spouse's name – that is, it's owned by your spouse. It's a relatively straightforward way to split income. When you contribute to an RRSP in your spouse's name, you receive a personal tax deduction. But since the RRSP belongs to your spouse, amounts received from the plan generally will be taxable to your spouse, not you.