Welcome Guest!Register Login Contact Us Site Map FAQ

Home

Charcha

Select section:

help! I forgot to contribute RRSP for last year.

Jump to Page:
< Previous [ 1 ] [ 2 ] Next >

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.

It is such a massive letdown to realize that i have missed the boat. 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.

It is such a massive letdown to realize that i have missed the boat. 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.

It is such a massive letdown to realize that i have missed the boat. 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.

It is such a massive letdown to realize that i have missed the boat. 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: seenappa(3) Pramod Chopra(3) investpro(3) Smiley(1) regar(1)

Jump to Page: < Previous [ 1 ] [ 2 ] Next >

Show Printable version

Send this page to a friend

Add to favorites

Discussions similar to: help! I forgot to contribute RRSP for last year.
	Topic	Forum	Views	Replies
	Sticky: Old Doordarshan Serials ! Your Pick ? ( 1 2 3 ... Last )	Filmi Gupshup	195255	193
	DRIVER’S HANDBOOK NOTES	Just Landed	5517	2
	Top Eight Reasons NOT to immigrate to Canada ** ( 1 2 3 ... Last )	Jobs	65172	324
	It's a Flat World, After All	News and Events	1861	0
	Top Eight Reasons NOT to immigrate to Canada ( 1 2 3 4 )	Moving Soon	9168	27
	Interesting Article About Canada	General	2225	1
	Nine ways to save on taxes using RRSPs ( 1 2 3 )	Financial Planning	6342	19
	Sticky: RRSP 101 (All RSP questions answered) ( 1 2 3 ... Last ) Tax benefits for Canadian Residents	Financial Planning	131080	121
	Sticky: All Home Hunters Unite! ( 1 2 3 ... Last )	Real Estate & Mortgages	68050	201
	spouser RRSP verses Own RRSP	Financial Planning	2298	3
	help! I forgot to contribute RRSP for last year. ( 1 2 )	Accounting and Taxation	3088	10
	Social Darwinism-Survival of the Fittest & Trickle-down Economics ( 1 2 3 ... Last )	News and Events	39065	229
	Getting Gift money from India ( 1 2 3 4 )	Financial Planning	16394	22
	Our First prospective woman President - Some facts about this great persona	Our Native Country!	2415	2
	Investpro's finance/economy newspicks ( 1 2 3 ... Last )	News and Events	24278	101
	Lease agreement- Problem at the end of lease ( 1 2 3 )	Real Estate & Mortgages	9160	20
	Unused RRSP ( 1 2 )	General	4055	7
	TFSA ( 1 2 )	Financial Planning	2554	7
	Dark Side of Dubai !	General	3621	4
	The Best Answers to Tough Interview Questions ( 1 2 3 4 )	Jobs	10408	24
	Mutual Fund 101 ( 1 2 )	Financial Planning	4747	10
	Is university worth it ?	Study	2799	1
	TN Visa to Green Card ( 1 2 3 4 5 )	USA	9468	31
	employer pension plan ( 1 2 )	Financial Planning	5902	11
	WHODATHUNKIT ( 1 2 3 )	General	9140	17

Charcha

help! I forgot to contribute RRSP for last year.

Discussions similar to: help! I forgot to contribute RRSP for last year.