Valley First

Still time to lower that tax bill

Small RSP contributions can make a difference

February 23, 2016

Penticton, B.C.—Although the RSP contribution deadline for the 2015 tax year is just around the corner, there’s still a window of opportunity for British Columbians to invest and cut their tax bill, says a local financial expert.

“Unlike tax-free savings accounts, contributing to an RSP can reduce your taxes owing or even result in a refund—and it doesn’t take as much as you think,” says Charla Johnstone a branch manager with Valley First, a division of First West Credit Union. “There is a common misconception that RSPs are only for people with a lot of extra cash, but in many cases, people are surprised to find they have the money to invest when they seek the expertise of a financial advisor.”

Johnstone says you don’t have to contribute the maximum allowable amount to achieve tax savings.

“Contributing as little as 10 per cent of your limit can reduce the amount of taxes you owe,” she says.

Johnstone gives the example of a B.C. resident making $60,000; by contributing $1,000 to an RSP, they will reduce their taxes owing by $297. By contributing $3,500, the tax savings jumps to $1,040.

About Valley First

Valley First is a premier provider of banking, investment and insurance services for residents and businesses in the Okanagan, Similkameen and Thompson valleys. As a division of First West Credit Union, B.C.'s third-largest credit union with 54 branches and 38 insurance offices throughout the province, Valley First brings innovative products, an extensive branch network and local decision making to the banking experience. For more information on Valley First, visit

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