From an investment perspective, the sooner you make your RRSP contribution, the sooner you start earning tax sheltered investment income.  Because of this you may consider making both your 2006 and 2007 RRSP contributions before March 1, 2007.

If you do this, you will have to report both contributions on your 2006 tax return, you will deduct only the 2006 amount and you will carry forward the 2007 amount until next year.  In your 2007 return, you will be able to deduct the carried forward amount without making an additional contribution. 

You may of course choose to make your 2008 contribution a year early, in January or February 2007, for the same investment reasons.

You must be careful not to exceed the total of your 2006 and 2007 limits (plus an allowable over-contribution of $2,000) or you may face a penalty or be forced to withdraw some of the contribution.

Please contact your accountant at Harvey, Lister & Webb Incorporated to discuss the possibilities.

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