Blogs & Comment

RRSP/TFSA season

RRSP season is upon us yet again. Statistics Canada recently provided a few factoids on RRSP contributions made for 2007. According to data taken from tax returns, RRSP contributions last year were $34.1 billion, about 6% of the total room available to eligible taxfilers. This is down from 7% in 2006.
Almost 88% of taxfilers were eligible to contribute to an RRSP for the 2007 tax year. Only 31% actually made them. Nationally, the median contribution was $2,780. Among census metropolitan areas, Calgary contributors had the highest median at $3,770, followed by those in Vancouver at $3,470 and Toronto at $3,300.
This year there is a new kid on the block: the Tax Free Savings Account (TFSA). Its stealing a fair amount of the limelight in media and blog commentary.
Some experts think the TFSA could rival or replace the RRSP in the years ahead. If so, thedata from Statistics Canadaon RRSP contributions could slip even more.