A lot of people view their RRSP as simply a lifetime accumulation account: Save, deduct, withdraw, and then pay tax. Dig deeper though and you will see that there are several ways you can use the RRSP advantage more effectively, whether to get more money working for you or put what you have saved to use more creatively.

1.) Deposit your retirement package
Did you leave your job recently? Did your employer come up with some money to ease your transition? If you can, try not to spend it. Or at least not all of it, particularly if you have been in the same job for awhile.
Even though you may not have any RRSP contribution room available, you may still be able to direct some of any lump-sum payment into an RRSP by making use of the Retiring Allowance provisions. A retiring allowance is an amount you receive on or after your retirement in recognition of long service. It includes payment for both unused sick leave and early retirement incentives. Amounts received in lieu of notice or for unused vacation are usually considered employment income and therefore don’t qualify.
Your employer should be able to calculate how much you will be able to direct tax-free to the RRSP. The first part of the allowance is calculated as $2,000 per calendar year of service prior to 1996. The second part of the calculation adds another $1,500 for each year prior to 1989 for any years where you made no “vested” pension contributions and did not receive credit for any company contributions to a pension plan.
If your employer directly transfers the eligible part of your retiring allowance, no tax is withheld. This tax-free rollover is allowed above your usual RRSP contribution room, and you have 60 days following the year in which you received the monies to contribute it to your RRSP.

2.) Swap some assets
If you had like to make an RRSP contribution this year but you have no cash, consider transferring non-registered stocks you already own into your plan, claiming their current market value as an RRSP deduction.
Remember that, if the stock is worth more today than when you bought it, you will have to report the difference as a capital gain on your tax return. Most likely the savings you realize from the RRSP deduction will offset the tax you have to pay on the capital gain.
Unfortunately, if the stock you transfer into your RRSP is worth less today than what you paid for it, you won’t be able to claim the loss against any gains you may have already realized. So do not transfer loser stocks into an RRSP. Instead, sell them, so that you can claim that loss.

3.) Do some family planning
Do you have a child under the age of 18 that has earned income? Whether it is from baby-sitting, mowing lawns, refereeing hockey, or from some other source, be sure to report every cent. As long as the child’s income is $8,839 or under, he won’t have any tax to pay, thanks to the basic personal credit. But filing a tax return will create RRSP contribution room based on the earned income reported.
A word of caution: Ensure that any salaries paid to children from within the family are reasonable and can be justified. Several recent tax cases have ruled that casual payment of salaries to children were simply income-splitting schemes, disallowing the deductions.
If they have the cash, fire away. There is actually no time limit on when an RRSP contribution must be made or when it must be claimed as a deduction, but the sooner the money is in the RRSP, the sooner it can start growing and compounding. Deductions for contributions made (you can lend them the money upfront to get started) may actually be carried forward indefinitely. This way you can delay making the claim until they are finished school and begin working. In that way, the tax benefit will be maximized.

4.) Go back to school
You can now make tax-free withdrawals from your RRSP to pay for your fulltime schooling, or for that of your spouse or common-law partner.
The amount you are eligible to withdraw may not exceed $10,000 in any one year, or $20,000 over a period of four years. Moreover, it will have to be repaid to your RRSP over a period of 10 years. The first repayment must be made within the first 60 days after the fifth year following the year of withdrawal.
If you (or your spouse or common-law partner) decides not to proceed with the education program, the full amount withdrawn must be repaid in that year, or you will be required to include the outstanding amount in your income.

5.) Switch those savings
Do you have a Registered Education Savings Plan (RESP) that did not get used as planned? You can transfer up to $50,000 from it to your or your spouse’s RRSP without tax, providing all the following conditions are met:

The RESP has been in existence for at least 10 years.
All the beneficiaries are at least 21 years old.
You or your spouse has sufficient RRSP contribution room.
The deduction is made in the same year or within the first 60 days of the following year.