Earn up to 85,000 Aeroplan Points. Conditions Apply.
Pig save money

RRSP Contribution Deadline in 2022

To the point The deadline for contributing to your RRSP is March 1, 2022, to be counted for the 2021 tax year.

What is the maximum RRSP contribution I can make?

Your most recent federal Notice of Assessment shows the maximum amount you can contribute to your RRSP for the year 2021. You can also check your file on the Canada Revenue Agency website. If you can’t find it, your maximum contribution is usually the smaller of these two amounts:

  • $27,830 (annual contribution limit for 2021)
  • or 18% of your previous year’s earned income

However, unused contribution, pension plan contributions, or excess contributions can change your maximum contribution amount.

Alternative strategy: Contribute to a spouse RRSP

This type of plan allows you to split the retirement income between you and your spouse. The higher income earner in the couple contributes to the spousal RRSP of the lower income earner. This income splitting strategy will allow:

  • the contributor records this contribution on his or her income tax return to immediately benefit from the deduction
  • the beneficiary with the lower tax rate will be taxed less on withdrawals from the spouse RRSP at retirement

Receiving RRSP contribution receipts return

For contributions made before December 31, 2021, your financial institution will mail receipts to you in mid-January 2022. For contributions between January 1 and March 2, 2022, they will be mailed to you no later than mid-March 2022. What to do if you don’t receive your contribution receipt return? Contact your financial institution, your financial advisor or check your profile on your financial institution’s website. You will receive a duplicate receipt. It is just as valid as the original.

Excess contribution

Have you been very (too?) enthusiastic about saving for your retirement this year? If so, you will receive a notice from the Canada Revenue Agency. A tax of 1% per month on your excess contributions is charged on the amount that exceeds your RRSP deduction limit by more than $2,000. However, you do have solutions:

  • Contact your financial institution or financial advisor;
  • Withdraw the excess amounts from your RRSP;
  • Complete CRA Form T3012A.

This will show them that it was a reasonable mistake and that you have taken steps to remove the excess amounts. This way, you won’t pay the additional tax.

Conclusion

If you are on this page, it is most likely because you want to prepare for your retirement and save for the future. Well done! According to an October 2020 Éduc Épargne survey, only 52% of Quebecers are motivated to prepare for retirement. Continue to learn more about saving for retirement so you can have the financial future you want.

Come to discuss that topic in our Facebook Group!

Suggested Reading