Not sure whether or not to contribute to an RRSP? With the 2009 RRSP contribution deadline of March 1st just around the corner, we’ve listed below five benefits of contributing to help you decide.

1. You get a tax deduction. Depending on your tax bracket, you can save up to $464 tax for every $1,000 contributed to your RRSP (using Ontario rates). You can calculate how much you’ll save by using this RRSP Savings Calculator.

2. Investment income earned in an RRSP is tax sheltered. This means your money grows faster inside an RRSP versus outside of one. If your RRSP investments grow at 6%, for example, your money would double in 12 years. Meanwhile, if you held the same investments outside an RRSP, and lost one-third of the return to tax annually, your money would double every 18 years.

3. The secret to RRSP compound growth is that you can invest the tax dollars that you defer. Deferred tax is really a zero-interest loan from the government. You won’t repay the loan until decades later in retirement, when you may be in a lower tax bracket.

4. You can take money out of your RRSP when buying your first home. Read more about it in this blog post .

5. Canadians are living longer than ever before. You will likely need all the RRSP savings you can accumulate to cover the costs of a retirement that will likely last 30 years or longer. In addition, Canadians are also retiring at younger ages. If you plan to retire at 55, for example, you’d have to wait five years to start your Canada Pension Plan (CPP) and 10 years to start your Old Age Security (OAS). You may also have to wait until a certain “normal” age to start drawing from a defined benefit employer pension plan. The RRSP is the perfect way to finance the gap before those other sources of cash flow become available.

Not sure how much you can contribute for 2009?

The 2008 Notice of Assessment you received from the Canada Revenue Agency (CRA) after filing your 2008 tax return states your 2009  maximum RRSP contribution amount. If you have not received this notice or need to double check the amount, call the CRA at  1-800-959-8281.