Last-minute RRSP contributions for 2025: what still counts

March 1st is tomorrow. Any RRSP contribution you make after that won't count for your 2024 tax return - it'll roll forward to next year's deduction.

That deadline catches people every year. You're not contributing for the 2025 tax year right now. You're contributing for 2024, the year you just filed taxes on. The CRA gives you the first 60 days of the new year to top up last year's RRSP room.

So if you earned $70,000 in 2024, you can contribute up to 18% of that - $12,600 - until March 1st, 2025, and claim it on your 2024 return. After March 1st, that same contribution can only be deducted on your 2025 return.

What counts as "made by March 1st"

The money has to be in your RRSP account by end of day March 1st. Not just initiated - actually received.

If you're contributing online through your bank, same-day transfers usually clear immediately. But if you're mailing a cheque or doing a wire transfer, give yourself buffer time. The CRA doesn't care about postal delays or processing times.

Spousal RRSP contributions follow the same March 1st deadline. You can contribute to your spouse's RRSP and claim the deduction on your own return - as long as the money arrives before the deadline.

Group RRSP contributions through payroll are different. Those get deducted from each paycheque and typically hit your account within a few days. If your February 28th paycheque includes an RRSP deduction, it'll likely clear in time.

The refund math

At $80,000 in Ontario, maxing out your RRSP room typically saves you roughly $2,500 in taxes. But your actual number depends on your province and income bracket. TaxSplit.ca will show you the exact refund based on your situation.

The higher your income, the more an RRSP contribution saves you. That's because RRSPs reduce your taxable income, and Canada's tax system charges more on higher income brackets. Someone earning $100,000 saves more per dollar contributed than someone earning $50,000.

If you miss the deadline

Your contribution doesn't disappear - it just moves to next year's tax return. The money still grows tax-free inside your RRSP, you just can't claim the deduction until you file your 2025 taxes next year.

There's no penalty for contributing after March 1st, as long as you don't exceed your lifetime contribution room. Over-contributing can trigger a 1% monthly penalty on the excess amount.

TFSA vs last-minute RRSP

If you're scrambling to decide between topping up your TFSA or making a last-minute RRSP contribution, the RRSP usually wins if you're earning above $60,000. Below that income level, the TFSA typically makes more sense because the tax refund is smaller and the flexibility of tax-free withdrawals matters more.

The 2025 TFSA limit is $7,000, and unlike RRSPs, there's no deadline pressure. You can contribute to your TFSA any time during the year.

If you've got cash sitting around and you're above $60,000, get it into your RRSP before tomorrow's deadline. The tax refund alone usually makes it worthwhile.