What is your RSP action plan for 2022?

Jamie Powell |

What is your RSP action plan for 2022?

The government allows you to put money into your RSP up to 60 days into the following calendar year to be used towards your previous year's income tax return. That deadline for this year is March 1, 2022, in which you can use those contributions to offset your income in 2021.

Determine your limit

Now, before you get started, the first thing you need to determine is your personal limit. You might be wondering the best way to determine what your RSP limit is, here are two easy ways:

  • You can look at your income tax notice of assessment. This is a three-page document that the government sends to you after you file your income tax return.
  • If you're not able to track down your NOA, the next best place to look would be on “My account”, which is a website with CRA. You can log in there and you can see what your limit is.
  • If you are working with a trusted advisor or accountant, they will be able to tell you the exact amount as well.

It is really important to know what your limit is because you don't want to go over. Currently, the government gives you $2,000 of leeway if you do exceed your limit, this portion is non-deductible. If you exceed your contribution limit by more than the $2,000 threshold, you will be facing interest and could incur penalties.

You also need to think about what you are contributing through work and any regular contributions you have to your RRSP savings plan. The next thing you may want to think about is where does your income fall when it comes to the marginal tax brackets for Alberta. You want to maximize this and try to get yourself down to the bottom end of that limit. If you happen to put in too much, that's okay. You can actually carry this forward to next year. And at that point, you can use it to offset possibly when your income is a little bit higher.

I know what I want to do, but HOW do I do it?

I know when I have to put the money in by, I know what my limit is, I know that I want to work within the tax brackets, but how do I actually get this money in there?

  1. Think about your bank account, chequing or savings. You're not making any money in there right now so this could be a great opportunity just to move some into your RSP and generate some tax refund.
  2. You could move it from a Tax-Free Savings Account or possibly a non-registered account. Be careful as you don't want to trigger any capital gains or if you do, you just want to be aware of it.
  3. You can look at possibly using an RSP loan or your line of credit. This is something that could bridge you for a short period of time to get the money in, get the tax refund, and hopefully pay off that debt.

Mark your calendar

The deadline is coming up and you have some things to think about. If you want a second opinion on how much money you should be contributing, or someone to talk about your financial plan, please reach out to me and my team. We are happy to consult with you on the best way to maximize your RSP contributions.


This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Jamie Powell is solely responsible for its content. For more information on this topic or any other financial matter, please contact an IG Wealth Management Consultant.