Originally Posted by shelley748 (Post 8385618)

You can purchase Provincial Bonds when they come out (depends where you live), otherwise I would contact an Investment advisor, although I am always sceptical of them as they are on commission only and some of them are not ethical folk....

Originally Posted by DESERTFOX (Post 8392431)

If not from an investment advisor, where can I purchase provincial bonds?

Originally Posted by JonboyE (Post 8384723)

If you started working in 2009 then you will earn contribution room for 2010. The deadline today is to make RRSP contributions that count for 2009. You will not have any contribution room for 2009 so if you invest any money today take care when you complete your tax return.

Originally Posted by jimf (Post 8413403)

Just wondered what aspect you meant about taking care of the tax return?

I take it if you started work in 2009 and you contributed to an RRSP you can't put the amount in the T1-2009 line 208 deduction as the allowance relates to 2008 or earlier.

It is then necesary to complete schedule 7 to declare 2009 contributions not used in 2009.

It then seems to be necessary to complete a T1-OVP for the RRSP payments over the amount that is deductible. If tax is due then it would be 1% ie $20 on $2,000 so not too bad.

The RRSP payments could then be included on the 2011 tax return.

Does that sound reasonable?

Originally Posted by JonboyE (Post 8413562)

In theory you are only allowed to contribute up to $2,000 more than your RRSP limit. In 2009 you have no limit so any RRSP in excess of $2,000 is subject to penalties (it is 1% per month) In practice it seems that the CRA allow you to go up to the following year's limit before they start taking an interest.

My guess is this is because many people make contributions in the first 60 days of a year and a contribution made in, say, February 2010 could count for 2009 or 2010.

You only need to complete the T1-OVP for 2009 if your unused RRSP contributions exceed your 2010 contribution limit.

Following chart 4 of T4040 it looks like I don't need to do a 2009 T1-OVP as the answer to step 4 is a yes which is good news. The unused RRSP contributions will then go on the T1-2009 schedule 7 for use in 2010.

Even then, there is another exemption. If your RRSP contributions are over the limit because you are required to make contributions as a member of a group RRSP scheme you are also off the hook. I only found out about this one recently and it does contradict something I posted last year around this time.

I'm guessing that the group scheme doesn't include the type where the employee elects to join at say 2% of salary in order to get the employers contribution?

Originally Posted by Winston Green (Post 8424159)

Is it not possible to just not declare your RRSP contributions thus not claimuning the tax relief and therefore not gaining an ancantage for overpaying or paying in the first year?

Originally Posted by Winston Green (Post 8424381)

I see but if you are not claiming any tax relief would the CRA care.your RRSP effectively just becomes a savings vehicle.you have put in taxed income and are not claiming anything back.