If you have made a contribution to your RRSP, it is not necessary to deduct it in this year’s income tax return. If you have other deductions or are simply in a low tax bracket, you may wish to carry the deduction forward to future years. The benefits of this approach are that you may save more tax by deducting the contribution in a year in which you are in a higher tax bracket and the undeducted investment inside the RRSP will earn more tax sheltered income. The disadvantage is that you will not have access to the extra tax refund that could have been saved in the current year. The advantages usually outweigh the disadvantages.

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

Legal Notice: Information on this site is not intended for use without professional advice.