When to contribute? | RRSPs and RRIFs | Discussion forum

Yas,

March 2nd, 2015, is indeed a Monday; however, it depends on when you anticipate the institution receiving, and processing, your RRSP contribution. There are likely provisions that allow the institution to "back-date" transaction(s) to the date of the cheque but that institution would likely be under no obligation to do so.

So, technically, while they may have the legal authority to "back-date" the processing date on an RRSP contribution, they don't have to. Particularly since there is absolutely no rationale to contributing on the last day, unless that might be a payroll date (of which Monday is not) and your employer's matching RRSP contribution would be included, I see no reason whatsoever to wait until then. With TFSAs, there is an advantage of withdrawing the funds on Dec. 31st and re-contributing on Jan. 1st of the following year, to avoid TFSA transfer fee(s).

In short, both date(s) can be considered the date of contribution - it's basically up to the financial institution as of them have provision(s) within their RSP Declaration of Trust and other account agreement(s) that state the date on a cheque or postmark on an envelope may not necessarily be the processing date of the RRSP contribution and they don't have to "back-date". To try and insist on this would be like "playing with fire" just to potentially start a "cat fight" with your financial institution. Makes no sense to me!

To play it safe, I would always make my RRSP contribution (if waiting until the last minute) on a Friday of the immediately preceding week of the last RRSP contribution date (in this case, Feb. 27th), if not sooner.

Hope that helps,
Doug

I don't think the date on the cheque matters, unless it is post dated. Also, it may not be up to the RRSP issuer to decide on a date other than the date that it actually received your cheque and paperwork.

Income Tax Act, subsection 146(5), requires the contribution to be made "by the taxpayer after 1990 and on or before the day that is 60 days after the end of the year." Is the contribution made (a) when I mail it, (b) when Canada Post gets around to postmarking it, or (c) when the RRSP issuer actually receives it? I don't know.

If I absolutely had to make my RRSP contribution on the last day, I would personally visit the branch or office during their business hours, with the cheque and paperwork, and have it processed on the spot. That way, there would be no question about when I made the contribution.

I agree with Doug and would try to make any RRSP contributions well before the last day.