As the deadline for the 2013 tax season progresses closer and closer, you still have the option of choosing which tax season you would like your RRSP contribution go to. For example, if you make contributions in the first 2 months of the year (January and February), you can decide whether you want that contribution will go to 2013 or 2014.
One factor that you must consider on whether it makes sense or not to allocate it to the previous tax year or the current is based on your salary and tax bracket compared to the previous year. If you salary was significantly lower in the previous year and you were in a lower tax bracket, compared to the current years figures with a higher income and higher tax bracket, then it would make the most sense to allocate the contribution to the current tax year. The logic behind this is, if you are in a higher tax bracket, it will be a bigger write off, the bigger amount you have in your RRSP for the tax year.
Contact Robert Clancy today to take advantage of your RRSP contributions and how they can tie into your mortgage needs!