The RRSP contribution deadline of March 1st is approaching us for the 2021 tax year!
If you plan on making an online contribution, February 24th is the last day the request can be submitted for the funds to be processed in time for the deadline. Unfortunately, we are unable to backdate the contributions to the date it was sent. If you need help setting up an online contribution, we would be glad to help.
If you are wondering how much you can contribute to your RRSP, the maximum contribution is 18% of your 2020 earned income, or $27,830 (whichever is less). However, there may be other factors that affect your contribution room, such as unused contribution room from prior years.
You can determine your personal contribution room by checking your latest Notice of Assessment, or logging on to your Canada Revenue Agency account at www.cra-arc.gc.ca/myaccount.
Contributing early can give your RRSP a boost by giving your assets more time to benefit from tax-deferred compound growth. If you want to take advantage of this, contributions for 2022 can be made as early as January 1st, 2022. Furthermore, the contribution limit has increased to $29,210 for 2022.
As always, we are here to help so please don’t hesitate to reach out if you have any questions.
All the best,
Livingston Wealth Management Group