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Final RRSP contribution before RRIF
If you’ve turned 71 in 2017, you have until December 31st to make any final contribution to your RRSP before converting it into RRIF or registered annuity.
It may be beneficial to make a one-time over contribution to your RRSP. There will be a 1% penalty for any amounts over the $2000 permitted overcontribution room for December 2017, but new room will open up in January 2018.
This may not be necessary if the RRIF owner has a younger spouse or partner: they can still make contributions to their partners RRSP until the partner turns 71.
Contributions to an RDSP
RDSPs are tax-deferred savings plans open to Canadian residents eligible for the Disability Tax Credit, their parents, and other eligible contributors. Up to $200,000 can be contributed to the plan until the beneficiary turns 59, with no annual contribution limits. While contributions are not tax deductible, all earnings and growth accrued on a tax-deferred basis.
Federal government assistance in the form of matching Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs) may be deposited directly into the plan up until the year the beneficiary turns 49. The government will contribute up to a maximum of $3,500 CDSG and $1,000 CDSB per year of eligibility, depending on the net income of the beneficiary’s family. Eligible investors may wish to contribute to an RDSP before December 31 to get this year’s assistance.
Starting from 2008 (the year RDSPs first became available), there is a 10-year carry-forward of CDSG and CSDB entitlements. For beneficiaries who have been DTC-eligible since 2008, CDSG and CSDB entitlements may be
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