Making good on those RRSP intentions

CNW - The clock is ticking for Canadians who haven't finalized their RRSP plans. With only one month to go, now is the time to move on those good RRSP intentions.

- Short on cash? Consider using non-registered stocks and bonds. Accrued gains will be taxable, but losses are not deductible.

-  Still low on funds? Consider borrowing. You can't deduct the interest paid on the money you borrow to contribute to an RRSP, but borrowing to make a contribution can be a wise decision in some cases.

-  Playing catch-up? If you're making a large "catch-up" contribution that brings your taxable income into a lower tax bracket, think about spreading your deduction over a couple of years to increase the related tax benefit. And if 2007 was a low-income year - perhaps you were in school, on maternity leave or not employed for part of the year - contribute anyway and claim the deduction next year, when the tax benefit will be greater.

- Paired up? If you have a spouse or common-law partner who isn't working or who has a low income, consider contributing to a spousal RRSP. Even with the new pension income splitting rules there are still benefits.

-  Excess contributions? Consider over-contributing to your RRSP by the permitted $2,000 penalty-free amount. You won't get a tax deduction for the extra amount, but your earnings on it will grow tax-free.

-  Naming a beneficiary? Think carefully about who it will be. Naming your spouse, common-law partner or a dependent child or grandchild as your RRSP beneficiary could permit RRSP proceeds on your death to be tax-deferred even longer. Don't forget that you can also name a charity as your RRSP beneficiary.