RRSP, Savings & Investments

Tax Tip: When To Hold Off Claiming RRSP Deductions

Tax Tip:

A common misconception amongst Canadian taxpayers is that you have to deduct all of the RRSP contributions you make each year.

Not true.

In fact, you can choose to deduct only a portion of your contribution each year, or none at all.

Holding off on claiming your deductions could be a good idea when you know that the taxes you need to pay on this year’s return will be less than those on next year’s return.

For example, if you maximized your RRSP deductions in 2018, and then got a pay increase at the beginning of 2019, you might wish to apply some of your RRSP deduction to next year’s return when your tax bill will be higher.