RRSP Deadline is March 1, 2022! Time to contribute?
Your guide to getting some money back (hopefully) on your taxes this year!
March 1, 2022 is the deadline to contribute to your RRSP. Any contributions that you put into your RRSP will be applied to your 2021 taxes. This is a great chance to put in a lump-sum contribution and get some more of your own money back at tax time!
How do RRSP contributions work?
Basically, it’s as if you made less money (for tax purposes). So, if you earned $70,000 in salary and put $3,500 into your RRSP (that’s 5% of your salary), you’re taxed as if you only made $65,000.
Some Examples:
Want to play with some numbers yourself? EY Canada has a pretty simple calculator, access it here.
How to contribute?
While we still get the odd person dropping a cheque by our office before deadline, the easiest way is to do this online! You can either log into your account at CanadaLife.com and click on Contributions or contribute directly through online banking with your bank account – as simply as paying your phone bill online. We’ve created full instructions here, or look for "How-To- Pre-Authorized Contributions" on our Resources page.
What if I contribute through Payroll Deduction?
Good for you! You’re following two of the best practices you can with investing – “Making it automatic” and “Paying Yourself First”! With Payroll Deduction, though, you’re getting your tax savings back on every paycheque. Those tax savings above? You’ve already received those! So the lump sum contribution is to increase what you get back at tax time!
For more information
As always, if you have any questions about this, or need any help with your own savings plans, please feel free to reach out to us!