As the deadline for registered retirement savings plan (RRSP) contributions approaches, one tax expert said it is possible for Canadians to have too much of their savings in a RRSP.

John Yanchus, director of tax and estate planning at Canada Life Assurance Company, said residents need to remember that when they withdraw funds, the payments are “fully taxable.”

“So if you have a large pool of money, it can end up into a larger tax consequence at the end of time,” Yanchus said in an interview on Wednesday.

As a result, Yanchus said he recommends that people diversify their savings and make sure they take their marginal tax rate into consideration.

The RRSP contribution deadline is Mar. 1, 2023. 

Check out the full video at the top of the article to learn more.