March has a way of turning a perfectly sensible retirement goal into a last-minute scramble. The Registered Retirement Savings Plan (RRSP) deadline arrives, the holidays have already visited the credit card, and suddenly a large contribution is supposed to appear from the same paycheque that covers everything else.
Starting in November won’t guarantee a higher investment return, but will give your budget more chances to cooperate. That practical advantage is worth quite a bit, even without a dramatic chart showing imaginary riches.
Contributions made during the first 60 days of the following year can generally be used toward the previous year’s RRSP deduction, subject to your available room and the reporting rules. The first 60 days of 2027 end on March 1. Yet your own tax situation determines how much to contribute and when claiming the deduction makes sense.
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Spread it out
Suppose your goal is a $3,000 contribution. Putting aside $750 in each month from November through February spreads the job across four months. Waiting until the end means investing the entire amount at once. Neither approach creates extra contribution room, but one is considerably easier to fit around normal life.
Check your latest notice of assessment and account for contributions already made. An RRSP deposit is not an invitation to exceed the limit, as contributions and deductions are also separate decisions. In some circumstances, claiming an eligible deduction in a higher-income year may be preferable to claiming it immediately.
An early contribution can initially sit in cash or a suitable short-term holding while you choose investments. The deadline concerns the contribution, not a requirement to buy a stock before the bell. That separation helps prevent a tax calendar from choosing your portfolio.
BMO
Bank of Montreal (TSX: BMO) is one Canadian company investors could research for the long-term equity portion of an RRSP. Its banking and capital-markets operations provide several earnings sources, including exposure outside Canada. It remains a bank, with all the lending risks that description carries.
In its fiscal third quarter, BMO reported adjusted earnings per share (EPS) of $3.96, up 22% year over year. Reported EPS was $2.38, down 24%. That gap deserves attention because adjusted growth doesn’t erase costs included in the financial statements.
Bigger than one stock
Rising loan defaults, weaker business activity, and a disappointing return on U.S. investments could all weigh on BMO. Higher interest rates don’t automatically improve bank profits if borrowers struggle or funding costs rise. I therefore wouldn’t put an entire RRSP contribution into one bank simply because its latest adjusted earnings looked good.
A regular savings plan can instead fund a diversified mix, with individual Canadian stocks occupying a deliberate share. Investors comparing an RRSP with a Tax-Free Savings Account (TFSA) should also weigh their tax bracket, withdrawal needs, and existing room. RRSP withdrawals are generally taxable, so the contribution deduction is only one side of the deal.
Bottom line
There is no requirement to borrow for a contribution simply because March is approaching. Interest on money borrowed to contribute to an RRSP isn’t deductible, and repayments still have to fit the household budget. An affordable November plan can help avoid that problem altogether. If the target is too ambitious, reducing it is usually more sensible than creating expensive debt to obtain a deduction.
November’s real advantage is having time to make those choices calmly. Set an affordable transfer, verify the room, and decide how the investment fits the retirement plan. By March, the contribution can already be in place, leaving you with less financial improvisation and a habit you can carry into the following year.
