Submitted by: Glen Izzard, CIM; Investment Advisor, Portfolio Manager
When the calendar turns to a new year, Canadians start thinking about one important date — the Registered Retirement Savings Plan (RRSP) contribution deadline. And for good reason: the decisions you make before that deadline can have a real impact on your tax bill and your long-term retirement savings.
Let’s break down what you need to know — and how to make the most of your RRSP opportunities before time runs out.
Key RRSP Deadline to Remember
The 2025 RRSP contribution deadline is Monday, March 2, 2026.
You have until midnight that day to make contributions that can be applied toward your 2025 tax year. Why does this matter?
RRSP contributions made in the first 60 days of the new year can be deducted from your income for the previous tax year — potentially lowering your taxable income and helping you earn a refund.
How Much Can You Contribute?
Your RRSP contribution limit is based on:
- 18% of your earned income from the previous year, up to a maximum of $32,490 for 2025, plus…
- any unused contribution room carried forward from previous years.
You can find your exact contribution room by logging into your CRA My Account or checking your latest Notice of Assessment.
Avoid over-contributing by more than $2,000, as the CRA imposes a 1% per-month penalty on the excess.
Why RRSPs Still Matter
RRSPs remain one of the most powerful tax-advantaged tools for Canadians to save for retirement.
Here’s why:
- Tax-deductible contributions: Every dollar you contribute reduces your taxable income.
- Tax-sheltered growth: Investments inside your RRSP grow tax-deferred until withdrawal.
- Flexible retirement income options: At retirement, your RRSP can be converted into a RRIF or annuity to generate steady income.
For Canadians in higher tax brackets, combining RRSPs with TFSAs offers both immediate tax relief and long-term flexibility.
RRSP Withdrawals: Home Buyers’ Plan & Lifelong Learning Plan
While RRSPs are designed for retirement, there are two programs that let you borrow from your RRSP tax-free for major life goals — if you meet the rules.
Home Buyers’ Plan (HBP)
If you withdraw funds through the HBP to buy or build your first home, you must use those funds before October 1 of the year following your withdrawal. For example, if you withdrew in 2025, you must purchase or begin construction before October 1, 2026.
You can withdraw up to $60,000 (per individual) and have 15 years to repay it into your RRSP. Missing repayments can trigger the unpaid amount being added to your income.
Lifelong Learning Plan (LLP)
The LLP allows you to withdraw up to $10,000 per year (maximum $20,000 total) from your RRSP to fund full-time education or training for yourself or your spouse. The student must be registered in the qualifying program before March of the year following the withdrawal — otherwise, the amount becomes taxable.
Repayment usually begins in the fifth year after your first withdrawal and must be completed within 10 years.
Tip: Treat HBP and LLP withdrawals as short-term loans from your future self — plan your repayments carefully to avoid losing valuable RRSP room and future growth.
Smart RRSP Strategies to Consider
- Start early: Automate monthly contributions to avoid the last-minute scramble.
- Use your refund wisely: Reinvest it into your RRSP or TFSA.
- Spousal RRSPs: Balance household income and reduce overall taxes.
- Borrowing to contribute: Consider a short-term RRSP loan only if you can repay it quickly with your tax refund.
Your 3-Step Action Plan
- Check your contribution room on CRA My Account.
- Review your investment mix and ensure it aligns with your goals.
- Book a 15-minute review with a financial advisor before March 2 to confirm your contribution, HBP, or LLP plans.
Final Thought
The RRSP deadline isn’t just a date — it’s a chance to make smart moves that strengthen your financial foundation. Whether you’re saving for retirement, buying a home, or upgrading your education, understanding your RRSP’s full flexibility can pay off for years to come.
About Glen Izzard
Based in Meaford, Ontario, Glen Izzard is a Chartered Investment Manager (CIM®) and Discretionary Portfolio Manager with over 15 years of experience helping clients navigate investing, cash flow, estate planning, and retirement transitions.
Known for his client-first approach, Glen focuses on building clarity, confidence, and long-term results. An active community supporter, he serves as treasurer for the Meaford Chamber of Commerce and as Assistant Coach with Georgian Bay Lightning Hockey. Glen’s mission is simple: provide thoughtful guidance, practical strategies, and a steady hand so clients can stay on course — financially and in life.
Please Contact: (905) 407-4500
