Ten RRSP questions answered
How much should you have in your account?
A guide to the best robo-advisors in Canada for 2020
Find out which robo-advisor is right for you.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
Planning for retirement with little or no savings to draw on
Financial planning advice is often catered to wealthier Canadians....
Presented by BDO Debt Solutions
The new normal: Take control of your finances and debt
Sponsored by Passiv
3 mistakes you might be making as a self-directed investor, and how to fix
Avoiding fees and staying on target with your investing...
Sponsored by Passiv
DIY investing for busy people—the portfolio management tool you didn’t know you needed
Forget spreadsheets and endless hours in front of the...
Unpacking the new work-from-home ETFs
Companies that produce the things consumers continue to need...
Investing with your conscience
For investors interested in putting their money where their...
Triggering losses by transferring investments to a TFSA
Stavros is worried that contributing an investment in kind...
TFSA vs RRSP: How to decide between the two
Here are five factors to consider when making your...
What to consider when naming investment account beneficiaries
Whom you name as your account beneficiary—and whether you...
Hi,
If there’s a room of 100000 in an RRSP, can we contribute all in a year? Or we can only deposit a maximum of 26000 only. THanks.
If you mean that you have a $100,000 of unused RRSP contribution room, then the answer is no you are not limited to putting in the yearly maximum. You could put in the full amount depending on your income, but beware of the AMT tax rules.
On the other hand, you may want to spread the unused room over more than one year so the tax rate of savings (tax rebate) on the income you are getting the deduction for is at the higher rates of tax.
By way of example if your income was 150k+, you may not want to take 100k of deductions all in one year. Instead, spreading it out over two or three years may allow you to save taxes at 53% or 43% instead of 31% or lower tax table rates. The difference in planning and being patient is you could easily save over $20,000 in taxes.
Generally speaking, if you are working with a CFP, CPA or R.F.P. it pays to get professional advice, as the ideas can be far greater than the cost.
Good luck!