The RRSP deadline to contribute to your plan is coming up, and you may be wondering how much you can contribute to your Common Wealth plan. General contribution limits for RRSPs, TFSAs, and DPSPs are set by the government and can be found here.
If your plan includes a DPSP, your employer’s DPSP contributions will reduce your RRSP contribution limit next year. For example, if your employer contributes $1,000 to your DPSP in 2022, your personal RRSP contribution room will decrease by $1,000 in 2023.
The RRSP deadline to contribute to your plan for the 2022 tax year is Tuesday, February 28th, 2023, at 11:59 pm EST.
Contact the CRA
You can get your contribution room online through the CRA’s My Account service. If you have not yet created an account, you can contact the Canada Revenue Agency at 1-800-267-6999.
Paper Notice of Assessment
You can also check your last notice of assessment or reassessment notice from the CRA to find your RRSP deduction limit.
Don’t forget the TFSA
Your Common Wealth plan also comes with a TFSA. That means you can contribute another $6,500 to your retirement plan. Many people don’t think to use TFSAs for retirement, but every dollar of retirement income you withdraw from a TFSA is 100% tax-free.
If it looks like you might be getting a tax refund in the spring, you can consider putting it to work in your Common Wealth plan.
Have questions about contributing to your Common Wealth plan? Contact one of our retirement specialists.