Building up room to contribute to your Registered Retirement Savings Plan (RRSP contribution room)
You are still in school, so retirement seems like a long way off. But if you have a paying job, you can contribute to an RRSP. No minimum age applies.
Tip: You don't have to contribute right away. You can carry forward your contribution room until you are ready to use it. It may help you lower your taxes in the future, when you are earning more. That's because you can deduct the money you contribute each year from your taxable income. Learn more now
To build contribution room, all you have to do is file your income tax return - even if you don't owe any tax. By filing a tax return, you are letting the government know that you have earned income. They will then let you know how much money you can put into your RRSP each year.
Building up room to contribute to a Tax Free Savings Account
If you are 18 or older, you can contribute up to $5,000 each year to a Tax Free Savings Account (TFSA). You earn this contribution room simply by filing your annual tax return.
Tip: You don't have to contribute right away. You can carry forward your contribution room until you are ready to use it. Learn more now Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.