Need A Legal Tax Shelter? Contribute To An RRSP

Beat the deadline: The deadline for making a contribution to a Registered Retirement Savings Plan (RRSP) that can be deducted on your 2010 tax return is March 1, 2011.
Know your limit: The maximum annual dollar limit for RRSP contributions in 2010 is $22,000.
Over the limit rules: Contributions up to $2,000 in excess of RRSP limits can be made without being subject to a penalty tax.

Spousal support: A spouse in a higher tax bracket may consider income-splitting opportunities for the future by contributing to a spousal RRSP. However, the contributing spouses are limited to their own personal deduction limits.
Contribution room: RRSP contributions can be carried forward if claimants foresee being in a higher tax bracket in future years. This will help maximize the tax deduction.
Age restrictions: The age limit for holding RRSPs has changed from 69 to71. If you turn 71 in 2010, you must convert your RRSPs into a form of retirement income before the end of this year or be taxed on the Fair Market Value of the plan. Be sure to discuss your options with a tax professional.
RRSP withdrawals: With few exceptions, RRSPs withdrawals are taxed. However, there are federal programs allowing contributors to borrow from their RRSP for putting a down payment on a first house or financing education. The special rules and restrictions should be discussed with a tax professional.

A local H&R Block tax professional can talk about other tips for RRSP contributors.

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