Tax advisors generally recommend making RRSP contributions as early in the year as possible. What is the basis for these recommendations?

Question

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The Answer is The reason tax advisors make these recommendations is to extend the period of tax free compounding. A payment made on January 1 will benefit from a full extra year of tax free compounding, as compared to a payment made on December 31 of that year.

Tax Advisors Generally Recommend Making RRSP Contributions as Early in the Year