2020 RRSP Deadline

This is the last day to make an RRSP contribution for the 2020 tax year. The federal government generally extends the deadline for a couple months so taxpayers can see their T4s from last year and do some last minute tax planning.

The RRSP is one of the few tax savings tools available to the average citizen, allowing them to contribute 18-pecent of their income to a specified maximum for any tax year. Generally speaking, it was created to provide a retirement savings vehicle for people who did not have a registered pension plan through their employment, however, it is also possible to access the funds to purchase a first home or to pay for education.

But the pandemic is affecting the way some people are looking at tax planning and saving this time round. A survey by TD bank says roughly one-in-seven Canadians have altered their financial plans because of COVID. And roughly an equal number say they are cutting back on their RRSP contributions for last year because of the disruption brought on by the pandemic.