Important RRSP and TFSA information for 2022
By ATB Wealth 18 November 2021 1 min read
The end of the current year and the beginning of a new year are often the times that individuals consider making contributions to their Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). If this is something you are contemplating, here is some important information you should know.
Important RRSP information
To qualify as a 2021 deduction, contributions to your own or to a spousal RRSP must be made on or before Tuesday, March 1, 2022.
Your personal RRSP deduction limit can be found on your RRSP Deduction Limit Statement provided by the Canada Revenue Agency (CRA) on your most recent Notice of Assessment, which can be accessed by logging into My Account.
The maximum amount you can contribute to your RRSP is determined as follows:
- 2021: 18% of previous year’s earned income up to $27,830
- 2022: 18% of previous year’s earned income up to $29,210
- + (Plus) Pension Adjustment Reversal (PAR)
- + (Plus) Unused deduction room earned in previous years
- - (Minus) Previous year’s Pension Adjustment (PA)
- - (Minus) Current year’s Past Service Pension Adjustment (PSPA)
Important TFSA information
If you have previously fully utilized your TFSA contribution room, the maximum amount you can contribute into a TFSA in 2022 is $6,000, remaining the same as 2019, 2020 and 2021.
If you have been both a Canadian resident and over the age of 18 since 2009, and have never made a TFSA contribution, you will have accumulated TFSA contribution room of $75,500 in 2021 or $81,500 in 2022.
Otherwise, if you are 18 years of age or older and a Canadian resident, your individual contribution room is calculated as follows:
- The annual TFSA dollar limit ($6,000 for 2022); plus
- Any unused TFSA contribution room from the previous year; plus
- Total amount of withdrawals from TFSAs in the previous year (excluding qualifying transfers and withdrawals of TFSA “excess”).
You can request your individual TFSA contribution room by calling 1-800-267-6999 or by logging into My Account.
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