RRSP CONTRIBUTION = TAX REFUND

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Contributing to an RRSP will likely result in a tax refund. But that refund shouldn’t be used for a trip or a shopping spree. Instead, you should re-contribute that money into an RRSP or pay down debt. If you want to get a tax refund this year, you need to make an RRSP contribution by March 2, 2020.

Determine whether or not you should contribute. Sometimes there are cases when you shouldn’t contribute to an RRSP. For instance, if you’re carrying high-interest credit card debt, you should pay off your debt instead of making an RRSP contribution. Also, if you have a defined benefit pension or a very low income, you’re probably better off contributing to a TFSA instead

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