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 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Investments inside an RRSP grow tax-sheltered until they’re withdrawn, at which point the funds are added to your income and taxed at your marginal tax rate.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 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.