Canadians have a number of profitable investment options including the Registered Retirement Savings Plan (RRSP). With the multitude of benefits offered by this plan, it would be easy for almost anyone to make a contribution to their RRSP. At the same time, only an expert can guide you to make the most of this plan and get the maximum benefits from it. Here are a few tips to help you out:

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• Consider a spousal RRSP – If your spouse’s retirement income is going to be significantly lower than yours, it would be a good move to direct all or some of the contributions you make to a spousal RRSP. You still have the option of getting a tax deduction on your current income, just like with a regular RRSP.

• Avoid withdrawals – It would be wise to avoid making any withdrawals from your RRSP unless absolutely necessary. This is because the amount withdrawn will be considered as taxable income, increasing the amount of taxes you have to pay.You have two alternate options of making non-taxable RRSP withdrawals, for which you need to make repayments within a certain timeframe. You can either go for the Lifelong Learning Plan or the Home Buyers’ Plan to withdraw certain amounts from your RRSP.

• Name a beneficiary – In case you haven’t named someone as a beneficiary of your RRSP, it’s about time you do. If something should happen to you, your RRSP assets will be transferred to your beneficiary once your estate is settled. Moreover, the amount will be tax deferrable.

• After your final contribution – It is possible for you to continue making your RRSP contributions till the end of the year in which you turn 71. After this, you will need to convert your RRSP to a retirement income source like RRIF.