As the deadline for contributing to your RRSP (Registered Retirement Savings Plan) for the 2024 tax year approaches, financial experts are urging individuals to take advantage of this opportunity to reduce their taxable income. The final date for contributions is coming up quickly on Monday, March 3.
Lisha Strunk, Manager of Financial Services at the Humboldt Conexus Branch, highlights the importance of this deadline. "Contributions to your RRSP are tax deductible, which helps reduce the amount you pay in income tax," she explains. "There's still some time to contribute before the deadline, and we encourage people to come into the Humboldt Conexus Branch to discuss their options."
Strunk emphasizes that every individual’s financial situation is unique. "Everyone's situation is a bit different," she says. "We always want to ensure that we're aligning your contributions with your long-term financial goals."
Beyond traditional RRSPs, Strunk also advises clients to consider other registered plans that could align with their financial goals. "A Tax-Free Savings Account (TFSA) is a great option for both retirement and shorter-term goals," she notes. "The First Home Savings Account is another great tool for reducing taxable income while saving for your first home."
For parents, the Registered Education Savings Plan (RESP) is another valuable option to help save for a child's post-secondary education. "These plans not only help you save for future goals but also offer tax advantages," Strunk adds.
Strunk urges individuals to carefully consider which plan is best suited for their needs. "It's always best to make sure the registered plan you choose aligns with your specific financial objectives," she says.
She also reminds people not to overlook employer-sponsored RRSP plans, noting that "if your workplace offers an RRSP plan, you should continue contributing to it as well." However, Strunk adds, some people may want to consider additional registered plans to complement their employer’s offerings.
"Tax-deductible contributions are a key factor," she stresses. "The contributions you make to your RRSP reduce the amount of income tax you owe. And remember, you don't need to contribute a large amount right away—you can start small and build over time."
While some online services offer RRSP options, Strunk clarifies that working with a financial institution like Conexus can provide personalized advice and guidance. "There’s nothing wrong with online options," she says, "but working with a financial institution ensures that your RRSP is tailored to your retirement goals."
As the deadline draws near, Strunk urges anyone interested in maximizing their tax savings and securing their financial future to act quickly. "We’re here to help you make the most of your RRSP contributions, and it’s never too late to start," she concludes.