As we embark on the new year, tax planning is often top of mind. Below we have outlined important dates and information to help guide you through the upcoming tax season.
TAX REPORTING & RRSP CONTRIBUTION DEADLINES
Clients invested in the QV Pooled Funds should expect to see 2022 tax slips delivered according to the following schedule:
Clients invested in segregated securities should expect to receive tax slips in early March 2023 from the custodian directly.
RRSP CONTRIBUTION LIMITS
The dollar contribution limit for the 2022 tax year is the lower of 18% of your earned income during 2021 and the maximum of $29,210. The deadline for making RRSP contributions for the 2022 tax year is March 1, 2023. QV will accommodate RRSP contribution requests until 12:00 PM MST on that day.
The RRSP dollar maximum for the 2023 tax year is $30,780.
You can carry forward unused RRSP room to future tax years.
TFSA CONTRIBUTION LIMIT
This year, the annual contribution limit has been increased to $6,500, up from $6,000 last year.
In addition to the 2023 TFSA contribution limit, any unused TFSA contribution room from previous years may be carried forward. If you have never made a TFSA contribution and have been eligible since its inception in 2009, your cumulative TFSA contribution room is $88,000.
Details on the rules surrounding timing of withdrawals and re-contributions to your TFSA can be found here.
BENEFITS OF CONTRIBUTING
If you are uncertain whether it makes sense for you to contribute to your RRSP and/or TFSA, we have included a link to a commentary we wrote that may be helpful in weighing your options: See it here.
WHERE CAN I FIND MY CONTRIBUTION ROOM?
You can verify your available contribution room for both TFSA and RRSP accounts online using My Account with the CRA, or by calling the CRA at 1-800-267-6999. Please keep in mind that the CRA’s records are not updated in real time. Any contributions made during 2022 might not be reflected in your reported contribution room. Please carefully review your contribution history to avoid overcontributing.
HOW TO CONTRIBUTE
As a reminder, you can contribute to your TFSA and RRSP accounts by transferring funds from a non-registered account to your respective registered accounts. Alternatively, we can pull funds from your bank account upon verification of banking information. Note that QV will not be held liable for charges resulting from insufficient funds. Due to COVID-19, RBC Investor & Treasury Services is not currently accepting cheques.
Should you have any questions, please feel free to contact your Investment Counsellor.
