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help! I forgot to contribute RRSP for last year.


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seenappa   
Member since: May 03
Posts: 254
Location: Brampton
Post ID: #PID Posted on: 12-03-07 15:44:53

Dear Forum gurus,

Lately, i had this nagging thought that i am forgetting something. Then i realized yesterday that its my RRSP contribution for the year 2006.:down:

It is such a massive letdown :( to realize that i have missed the boat.:cry: I am left with having to declare a good amount of money to the taxman upfront.

well, i am trying to salvage what best is possible. Please fire away any advice, suggestions to what can be done now?

1) is there another fund that i can invest and escape the taxes?

2) is there someway to save this amount and put it for the 2007's RRSP?

Thanks in advance,

seenappa



Smiley   
Member since: Mar 03
Posts: 1185
Location: USA
Post ID: #PID Posted on: 12-03-07 15:53:35

If you invest in RRSP now, It will automatically go in 2007 RRSP contribution


-----------------------------------------------------------------
We will find a way or we will make one


Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON
Post ID: #PID Posted on: 12-03-07 16:12:12

Quote:
Originally posted by seenappa

Dear Forum gurus,

Lately, i had this nagging thought that i am forgetting something. Then i realized yesterday that its my RRSP contribution for the year 2006.:down:

It is such a massive letdown :( to realize that i have missed the boat.:cry: I am left with having to declare a good amount of money to the taxman upfront.

well, i am trying to salvage what best is possible. Please fire away any advice, suggestions to what can be done now?

1) is there another fund that i can invest and escape the taxes?

2) is there someway to save this amount and put it for the 2007's RRSP?

Thanks in advance,

seenappa



NOTHING can be done now for 2006 Tax deduction. You had till 1st March 2007 to contribute in your RRSP for the deduction for Tax year 2006.

What ever you invest in RRSP till 1st March 2007 can be used either for 2006 Tax deduction or can be used for the year 2007 Tax deduction.

We always advise our clients to start RRSP contribution early in the year by signing for a Pre-Authorized debit from your account on either weekly, bi-weekly or monthly basis so that you do not have to worry about contributing a large sum at the last minute and you also get the benefit of 'dollar cost averageing'. Since the money is taken from your account even before you see it, you are able to save it.

Plan your 2007 RRSP contributions by starting a PAC and you would not be in similary situation next year.

Good Luck.




-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



seenappa   
Member since: May 03
Posts: 254
Location: Brampton
Post ID: #PID Posted on: 12-03-07 16:22:02

Quote:
Originally posted by Smiley

If you invest in RRSP now, It will automatically go in 2007 RRSP contribution


Hi Smiley,

Thanks for the tip..Does this mean that i can pay the RRSP amount in bulk now for the year 2007 and when i file taxes for year 2006, i can claim that tax deduction as having paid to RRSP?

Please clarify,

Thanks

seenappa



seenappa   
Member since: May 03
Posts: 254
Location: Brampton
Post ID: #PID Posted on: 12-03-07 16:24:30

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by seenappa

Dear Forum gurus,

Lately, i had this nagging thought that i am forgetting something. Then i realized yesterday that its my RRSP contribution for the year 2006.:down:

It is such a massive letdown :( to realize that i have missed the boat.:cry: I am left with having to declare a good amount of money to the taxman upfront.

well, i am trying to salvage what best is possible. Please fire away any advice, suggestions to what can be done now?

1) is there another fund that i can invest and escape the taxes?

2) is there someway to save this amount and put it for the 2007's RRSP?

Thanks in advance,

seenappa



NOTHING can be done now for 2006 Tax deduction. You had till 1st March 2007 to contribute in your RRSP for the deduction for Tax year 2006.

What ever you invest in RRSP till 1st March 2007 can be used either for 2006 Tax deduction or can be used for the year 2007 Tax deduction.

We always advise our clients to start RRSP contribution early in the year by signing for a Pre-Authorized debit from your account on either weekly, bi-weekly or monthly basis so that you do not have to worry about contributing a large sum at the last minute and you also get the benefit of 'dollar cost averageing'. Since the money is taken from your account even before you see it, you are able to save it.

Plan your 2007 RRSP contributions by starting a PAC and you would not be in similary situation next year.

Good Luck.




Thanks Pramod,

My main goal of contributing to RRSP is to buy a house on a 25% downpayment. is there some other way to save this unused money(RRSP money) so that i will still have it tax sheltered and can use it in future?

Thanks,

seenappa



Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON
Post ID: #PID Posted on: 12-03-07 16:35:15

Quote:
Originally posted by seenappa

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by seenappa

Dear Forum gurus,

Lately, i had this nagging thought that i am forgetting something. Then i realized yesterday that its my RRSP contribution for the year 2006.:down:

It is such a massive letdown :( to realize that i have missed the boat.:cry: I am left with having to declare a good amount of money to the taxman upfront.

well, i am trying to salvage what best is possible. Please fire away any advice, suggestions to what can be done now?

1) is there another fund that i can invest and escape the taxes?

2) is there someway to save this amount and put it for the 2007's RRSP?

Thanks in advance,

seenappa



NOTHING can be done now for 2006 Tax deduction. You had till 1st March 2007 to contribute in your RRSP for the deduction for Tax year 2006.

What ever you invest in RRSP till 1st March 2007 can be used either for 2006 Tax deduction or can be used for the year 2007 Tax deduction.

We always advise our clients to start RRSP contribution early in the year by signing for a Pre-Authorized debit from your account on either weekly, bi-weekly or monthly basis so that you do not have to worry about contributing a large sum at the last minute and you also get the benefit of 'dollar cost averaging'. Since the money is taken from your account even before you see it, you are able to save it.

Plan your 2007 RRSP contributions by starting a PAC and you would not be in similarly situation next year.

Good Luck.




Thanks Pramod,

My main goal of contributing to RRSP is to buy a house on a 25% downpayment. is there some other way to save this unused money(RRSP money) so that i will still have it tax sheltered and can use it in future?

Thanks,

seenappa



Yes..

It depends when you are planning to buy the house. If you are not buying the house till end of June, 2007 you can put money in RRSP and that would give you tax benefit next year. I am sorry, but nothing can be done for 2006 tax year now.

Why not give me a call and them may be I can guide you much better after knowing your situation fully and correctly.



-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



investpro   
Member since: Nov 06
Posts: 1628
Location: carl sagan's universe
Post ID: #PID Posted on: 12-03-07 21:03:40

If you have the money, any time is a good time to invest either in RRSP or in a non-registered a/c.
Contrary to a previous post, you can invest in an RRSP now, buy your home after 90 days of leaving it in an RRSP, use those funds for the HBP (Home Buyer's Plan), and still deduct it from your deduction limit for 2006 in 2007. You do not have to wait till end June, 2007 to buy your home.

There are also methods of investing in non-registered investments and getting a tax deduction.


Pls also see your PM.



Contributors: Pramod Chopra(3) investpro(3) seenappa(3) Smiley(1) regar(1)



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