Feb. 3, 2023

RRSP: The potential of unused contribution room.

Do you have unused Registered Retirement Savings Plan (RRSP) contribution room? It is possible even if you have continuously contributed to your RRSP.

Over the years, unused contribution room accumulates and can represent a significant amount. This can make a big difference in your retirement planning;

•What impact could using this contribution room have on your retirement?

•Depending on your objectives and personal situation, what scenarios could be possible and what additional savings efforts are needed?

•Do you know how to find out how much unused contribution room you have?

These questions and more can be answered through a customized financial plan catered to your goals and vision. Making the most of your RRSP can be extremely beneficial — the sum is deductible from your total earned income, which can reduce taxes paid in the year it is claimed. Income earned within an RRSP, such as interest, dividends and capital gains, grows tax-deferred until it is withdrawn.

Contributions can still be made for the 2022 taxation year. Any lump sum deposits made in the first 60 days of 2023 can be applied against the previous tax year, the deadline for contributing is March 1, 2023.
You can verify your RRSP contribution room by logging in to your CRA account.

We want to know what is important to you that requires planning, money and time. Having a highly diversified portfolio, focused on your asset allocation that follows a well-developed plan will always provide you with the best foundation for your investments.

Contact us today to discuss making a lump sum contribution to your RRSP and setting up your custom financial plan, mailbox.cmgroup@cibc.com