What’s the RRSP deadline for 2022?

There’s one well-known exception to this rule: With registered retirement savings plans (RRSPs), Canadians have 60 days after the end of the calendar year to make contributions for the previous tax year. This means you have until midnight, 11:59 PM ET, on March 1, 2023, to make an RRSP contribution and lower your taxable income for the 2022 tax year.

What’s an RRSP? 

An RRSP is a registered savings account designed to help Canadians save for retirement. You can hold cash and a wide range of investments (including stocks, bonds, exchange-traded funds and guaranteed investment certificates) in your RRSP, and contributions are tax-deductible, meaning they reduce your taxable income.

Investments inside an RRSP grow tax-sheltered until they’re withdrawn, at which point the funds are added to your income and taxed at your marginal tax rate. Typically, the goal is to withdraw after you retire, when you may be in a lower tax bracket than when you were earning money. 

What’s the RRSP deadline for 2022? 

Canadians have 60 days after the end of the calendar year to make RRSP contributions towards the previous tax year. This means the RRSP deadline for the 2022 tax year is midnight, 11:59 PM ET, on March 1, 2023. 

Canadians who turn 71 have until December 31 of the same year to contribute to their RRSP. So, if you turned 71 in 2022, you had until December 31, 2022, to contribute to your account. Seventy-one is also the age at which you must either cash out your RRSP, convert it to a registered retirement income fund (RRIF) or purchase an annuity.

How do RRSP deductions work? 

RRSP contributions made between March 2, 2022, and Dec. 31, 2022, can be deducted from your taxable income for the 2022 tax year. 

If you contribute to an RRSP between January 1 and March 1, 2023, you have two options: You can deduct those contributions from your taxable income for either the 2022 or 2023 tax year. Either way, you will have to report the contributions on your 2022 tax return, but you can choose to carry the deductions forward into the future. 

Any contributions you make after this year’s RRSP deadline on March 1 will be reported on your 2023 tax return. 

When will my RRSP tax slips be available?

Financial institutions typically send out tax documents before the end of January. These tax slips include RRSP contributions made between January 1 and December 31 of the previous year. 

Contributions made between January 1 and March 1 of the current year are included in a separate tax slip that is generally sent out by the end of March. You will have to refer to both sets of documents when completing your tax return, so wait to receive your second tax slip before filing your taxes. (The tax-filing deadline is May 1, 2023.)

Should you make an RRSP contribution before the deadline?

There are a few different ways to approach RRSP contributions.

• Lump sum: Some people prefer to make a lump sum contribution, either towards the end of the calendar year or shortly before the RRSP deadline. This allows them to step back and take stock of their savings, as well as their taxable income (and potential tax burden) for the year before deciding how much money they feel comfortable putting into their RRSP. This can be a good strategy for individuals whose income varies from one year to the next, such as people who are self-employed. 
• Regular contributions: Other people prefer making smaller contributions throughout the year. Setting up pre-authorized transfers from your paycheque or bank account can help ensure you always pay yourself first. Making contributions earlier also gives your investments more time to grow. And regular contributions can help you take advantage of dollar-cost averaging. 
• Combination: Many Canadians do a combination of regular RRSP contributions plus a lump sum at tax time.

The bottom line

An RRSP can be a powerful tool for retirement savings. Before deciding if and when you should contribute to an RRSP, check how much RRSP contribution room you have left, because over-contributing can result in a tax penalty. Consider what you currently have socked away for retirement and whether a tax-free savings account (TFSA) might be a better option for you. 

You can also check where you fall within the Canadian federal and provincial tax brackets to estimate how much income tax you’ll owe without RRSP deductions. If you need help with retirement planning, consider talking to a financial advisor.

Video: The differences between a TFSA and RRSP

Read more about RRSPs:

• How much should I have in my RRSP?
• Where should you invest an extra $50,000 in your 60s?
• How to plan for retirement in five or 10 years
• Tools and habits to stay on track with your money goals

About Justin Dallaire

Justin Dallaire is the senior editor at MoneySense.ca. He was previously the associate editor at Strategy magazine and has contributed to publications including The Walrus and TVO.org.

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