The deadline falls 60 days after the end of the year. If that day falls on a weekend, the CRA may extend the deadline to Monday.

You can contribute up to 18% of your earned income to a maximum of $25,370 in the 2016 tax year (minus pension adjustments from your company pension plan) in addition to unused contribution room from previous years.

Your Notice of Assessment from the CRA will state your maximum contribution room for the current year. If you need to double check, call the CRA at 1-800-267-6999.

Earned income includes salaries, self-employment income, taxable maintenance and alimony payments, and net rental income. It does not include income from pensions or investments. Speak to your financial advisor about other types of income that may be eligible.

If you don’t contribute the maximum amount that you’re allowed, you can carry forward the unused portion indefinitely. Your Notice of Assessment will show your unused RRSP contribution room.

Over-contributions are subject to penalty fees. Where over-contributions exceed $2,000, you will be assessed a 1% per month penalty tax until the excess is withdrawn or additional contribution room becomes available.

You can hold mutual funds, equities, bonds, cash and a variety of other investments in your registered plan. Speak to your advisor to ensure you do not own prohibited investments.

The 2005 Federal Budget eliminated the foreign property limit for tax-deferred retirement plans. You are no longer restricted to holding up to 30% of foreign investments in your portfolio.

Borrowing money to invest can be an effective way to maximize RRSP contributions. One strategy to consider is to apply for your loan in December, defer funding to February (in time to meet the RRSP contribution deadline), defer your first repayment to July and use your tax refund (typically received between April and June) to reduce your loan balance. Speak to your financial advisor to see if this is a suitable investment strategy for you.

The higher income earner normally makes the contributions on behalf of his or her spouse. The contributor, normally the higher income earner, would claim a tax deduction for the contribution, and withdrawals would be taxable to the lower income spouse (provided contributions have remained in the plan for at least three years).

You can withdraw from your RRSP but the amount you withdraw will be included in your income as fully taxable ordinary income. You will have to pay withholding tax when you withdraw (note: there are withdrawal restrictions if you have a locked-in RRSP). You might also have to pay additional tax on the withdrawal when you file your tax return for the year with credit for any withholding tax previously withheld.

The government offers two programs where you can take money out for your RRSP without tax provided the amounts are re-contributed to the RRSP over time. The Home Buyers’ Plan (HBP) lets a first-time homebuyer withdraw up to $25,000 for the purchase of a new home. The Lifelong Learning Plan (LLP) lets a student (or a spouse) withdraw $10,000 per year up to $20,000 to fund full-time education or retraining. Repayments under the HBP must occur over a 15-year period. Repayments under the LLP must occur over a 10-year period.

Generally, no. The federal government requires financial institutions to calculate, to the extent possible, withholding taxes on RRSP withdrawals on a cumulative basis. If you make five separate requests for withdrawals of $5,000 or less, each withdrawal may be subject to an escalating withholding tax to a maximum of 30% (31% for Quebec residents).

You must wind up your RRSP by the end of the calendar year in which you reach age 71, typically by way of transfer to a Registered Retirement Income Fund (RRIF). However, you may convert to a RRIF at any time.

Don’t wait for your financial institution to tell you that it’s time to convert. If you don’t choose a RRIF (or annuity) by the end of the year in which you turn 71, the financial institution that holds your RRSP could cash it in and send you the cash less any income taxes which must be withheld. Where this occurs, the total value of your cashed-in RRSP will be added to your income for the year. It’s up to you and your financial advisor to avoid a big tax bill at the end of the year.