It’s the last day to make an RRSP contribution for the 2016 tax year.
That is, if you have an RRSP account.
CKNW Business Analyst Robert Levy says there seem to be more and more British Columbians who either don’t have an RRSP account, or are investing elsewhere.
“I think that is the theme. People in British Columbia, typically those stretched to make a mortgage payment or the other kind of debt expenses that they have, it’s hard to contribute to an RRSP in today’s environment even though the opportunity presents itself to get a lower tax bill. I mean, it’s a struggle for a lot of day-to-day Canadians.”
For those who in B.C. who are able to save, Levy says they’re now often eying other vehicles to park their money.
“It’s not just an RRSP. You can get a tax-free savings account where maybe you want to go for a bigger growth strategy and that’s why you might elect to have a TFSA instead of deferring taxable income in an RRSP.”
Levy says if you’re in a lower marginal tax bracket, a TFSA may be the better option.