Last‑Minute RRSP Contributions: What to Know

February 28, 2025 by Finquest Financial

The deadline for RRSP contributions is one of the most important dates for Canadian taxpayers. If you’re making a last‑minute contribution in 2025, here’s what you need to know to maximize your tax benefits and avoid common mistakes.

Key RRSP Deadlines

For the 2024 tax year, the RRSP contribution deadline is expected to fall in the first 60 days of 2025 — usually around March 1. Contributions made before this date can be deducted from your 2024 income, reducing the amount of tax you owe.

Why Last‑Minute Contributions Can Help

Even if you haven’t contributed throughout the year, making a final deposit before the deadline can lower your taxable income. For many Canadians, this results in a larger tax refund, which can then be reinvested or used to pay down debt.

How Much Can You Contribute?

Your RRSP contribution limit is based on 18% of your previous year’s earned income, up to a maximum set by the CRA, plus any unused room from past years. You can find your exact limit in your CRA My Account.

Strategies for Last‑Minute Contributions

- Use your tax refund wisely: Consider reinvesting it into your RRSP or TFSA.
- Borrow to contribute: Some Canadians take out short‑term loans to maximize contributions before the deadline, then repay with their tax refund.
- Automate next year’s savings: Set up automatic transfers to avoid scrambling at the deadline again.

What If Cash Is Tight?

If you want to contribute but don’t have the funds available, consider contributing what you can and planning ahead for next year. For urgent expenses that compete with your savings goals, Finquest Financial offers payday loans up to $1,500 to cover short‑term needs, so you can stay on track financially without missing bills.

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The Bottom Line

Last‑minute RRSP contributions are a powerful way to reduce taxes and grow your retirement savings. Don’t let the deadline slip by — even a small contribution today can pay off tomorrow.

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