RRSP first year contribution
My nephew is 19 years old and has started his first job this year. He wants to know if he can start doing contributions to a RRSP. His employer is not matching it so it would be just him contributing.
Is he supposed to contribute up to $26,500 or calculate 18% of his annual salary who'd lower?
And the most important, can he ask for income tax reduction when filling taxes in 2020 for the tax period 2019? What I read is that he can only claim the contribution as a tax deduction if it's deposited in 2020, but I am not sure if i understood properly.
Thanks
Is he supposed to contribute up to $26,500 or calculate 18% of his annual salary who'd lower?
And the most important, can he ask for income tax reduction when filling taxes in 2020 for the tax period 2019? What I read is that he can only claim the contribution as a tax deduction if it's deposited in 2020, but I am not sure if i understood properly.
Thanks