RRSP Season in Canada

RRSP season is the first few months of the new calendar year, where you can make contributions to your RRSP (Registered Retirement Savings Plan) for the year 2023. 

For 2024, you have between January 1st - February 29th, 2024 to contribute into your RRSP, and claim these contributions as tax deductions for 2023. 

You might be wondering: "What is an RRSP? How can it benefit me?" 

A Registered Retirement Savings Plan is a registered account that has tax-advantages. Any contributions made into the RRSP will reduce the amount of taxable income you need to pay for that year, and any income earned in an RRSP is not taxed until the time of withdrawal. Therefore, the growth of the investment is tax sheltered. 

The purpose of an RRSP is for you to make contributions during your working years (when your income is likely at the highest tax bracket), so that you can reduce your taxable income. During retirement, assuming a lower tax bracket, you would withdrawl those funds as income, and benefit from the lower tax rate.