RRSP Season: It’s Bigger Than a Refund
Feb 28, 2026
Make Sure Your Money Is Invested
Simply contributing to your RRSP is not enough. You need to invest the money properly.
First, review your risk tolerance. Then confirm your time horizon. Finally, make sure your investments support your long-term goals.
If cash sits inside your RRSP, it does not grow effectively. As a result, you lose valuable time in the market.
Your contribution should align with your broader investment strategy and overall financial plan.
Think About When to Claim Your Deduction
You do not have to claim your RRSP deduction right away.
Instead, consider your future income. If you expect to earn more next year, you may benefit from carrying the deduction forward. This allows you to use it in a higher tax bracket.
Because tax brackets matter, timing matters just as much as contributing.
For official guidance on RRSP contribution rules, review the information provided by the Canada Revenue Agency.
Strategic deduction timing should form part of your broader Tax Planning strategy.
Use Your Tax Refund Strategically
If your contribution generates a refund, pause before you spend it.
You could reinvest it. You could reduce high-interest debt. Or you could contribute to a TFSA for added flexibility.
Most importantly, treat your refund as part of your long-term Retirement Planning strategy, not as extra spending money
What If You Missed the RRSP Deadline?
First, do not panic.
You did not lose your contribution room. It carries forward indefinitely.
However, you did miss the opportunity to reduce last year’s taxes. That said, you still have strong options.
You can contribute now and reduce next year’s taxable income. Alternatively, you can prioritize a TFSA if flexibility fits your situation better. In addition, setting up automatic monthly contributions can remove deadline pressure entirely.
Instead of reacting during tax season, build a strategy that works year-round.
RRSP vs TFSA — Which Is Better?
The answer depends on your income, tax bracket, and long-term goals.
Generally, higher-income earners benefit more from RRSP contributions. On the other hand, a TFSA offers tax-free withdrawals and flexibility.
Therefore, the better choice depends on your overall financial structure. No universal answer exists. Only the right strategy for you.
Build Your Year-Round Retirement Strategy
The RRSP deadline should create awareness — not stress.
Use it as a checkpoint. Review your savings. Evaluate your investments. Adjust your tax strategy if needed.
Wealth building rewards consistency. It does not reward last-minute decisions.
If you are unsure whether to contribute, carry forward deductions, or adjust your retirement strategy, seek guidance early.
Because the strongest financial plans begin long before the deadline arrives.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult a qualified advisor for personalized recommendations.
Fitzallen Sutton, CFP
