January 2022 – RRSP reminder: Last day to top up or make your RSP contribution for the 2021 tax year is March 1 st 2022. The 2021 maximum RSP contribution limit is $27,830. If you’re unsure how much you can contribute, your 2020 Notice of Assessment (from the prior year’s tax return) will give you the exact amount of your 2021 RSP room. If you’ve had a pay increase, consider increasing your regular contributions too. You can also transfer funds from your non registered or TFSA account to your RSP, but take care as funds transferred from a non registered account could have tax consequences. The 2022 maximum RSP contribution room is $29,210. Investing all or part of this sooner than later for greater long term compounded growth always makes sense. Rather than having to come up with a lump sum of cash at year end, instead consider setting up a regular contribution (monthly, bi-weekly, etc.) to average into the market. Unless you receive a year end bonus, or other large payment, this is usually easier on the pocket book, and also often results in a larger retirement fund over time. Instead of waiting for a tax refund, file a T1213 with CRA to get their approval so that your employer doesn’t have to deduct tax at source on the amount you contribute to your RRSP. This can make saving easier, and avoids giving the government an interest free loan of your hard earned tax dollars.