Have you contributed to your RRSP yet? The deadline for contributing and using it on your 2011 income tax return is Feb. 29. Here are ways you can do it:

All at once: At this point in time, your only choice is to make a lump sum contribution. Whether it’s because you have an uneven income flow, you forgot, or you don’t have a retirement plan in place, “we do know that in February, people stress about making a contribution,” says Peter Drake, vice-president, retirement and economic research, Fidelity Investments Canada. “If you’re in that situation, it’s better to do something than do nothing.”
Next year, try to contribute the lump sum earlier in the year rather than later, advises Mike Henry, senior vice-president of retail products at Scotiabank. “Once money is inside an RRSP, it’s growing tax free.”

Loan: You might also consider borrowing money. “This is still a great way for someone to get money into retirement savings,” says Henry. Most banks have special RRSP loans. For example, “We can set up a catch-up RRSP line at Scotiabank to help you catch up on any unused RRSP contributions,” says Henry. But paying off the loan as quickly as possible is recommended. “We let customers defer payments for three months while they wait for their tax return to come in. Then they can use the refund against the loan.”

Throughout the year: Regular contributions (weekly, monthly, etc.) are the most convenient and effective way to contribute, says Anthony Williams, vice-president of academic affairs, Canadian Institute of Financial Planning.