The 2022 RRSP deadline is fast approaching! This is the time of year when Canadians tend to rush and contribute a little extra in order to unlock a bigger tax refund.
Here are the key things you should know about the RRSP deadline:
When is the deadline to contribute to an RRSP?
March 1, 2022 is the deadline to contribute to an RRSP for the 2021 tax year. This is the last day that you can contribute to your RRSP if you want to take advantage of deductions and increase your tax refund this spring.
The deadline to contribute to your own RRSP is December 31st of the year you turn 71 years of age. After this point in time, you will no longer be able to contribute to your own RRSP.
Why is it important to meet the deadline?
The deadline is important simply because you’ll reap immediate benefits when it comes to your tax return. And tax savings are the biggest benefit of an RRSP to begin with!
What happens if you miss the RRSP contribution deadline?
If you can’t contribute before the deadline, don’t sweat it. Any remaining contribution room rolls over and is added to your limit for the following year. You only need to meet the deadline if you want to apply those contributions towards your taxes this year.
How much can I contribute to my RRSP?
You can contribute 18% of the earned income you reported on your tax return for the previous year (2020), or $27,830, whichever is less, plus any unused contribution room that you have available from previous years.
Ready to contribute before the deadline?
Reach out to one of our advisors to discuss your own RRSP options, to open a new account or make an additional contribution.