The new contribution limits for registered retirement savings plans (RRSP), tax-free savings accounts (TFSA) and Canada pension plans (CPP) have been released.
Dave Schurman of FirstOntario Credit Union joined Tim Bolen on Morning Live to share the updated numbers for 2022.
What is the 2022 limit for RRSPs?
For the 2022 taxation year, the contribution limit for an RRSP is 18 per cent of earned income.
While the percentage has not changed for a number of years, Schurman noted the maximum dollar amount increases annually.
For this new year, that number has gone up to $29,210, which is approximately $1,400 more than the previous year.
Schurman said a few other things to keep in mind include carry forward room if you did not use all of your prior contribution room and the ability to make an RRSP spousal deposit.
You have 60 days after the end of the year to make an RRSP contribution for the previous year. That means March 1, 2022 is the deadline for the 2021 taxation year.
What is the 2022 limit for TFSAs?
The annual limit for a TFSA this year is $6,000, which has remained the same since 2019.
Since there is a lifetime contribution limit, you may be eligible to deposit more due to unused room from 2009 onwards.
Schurman recommended to start contributing to a TFSA as soon as possible in a new year.
CPP and OAS Payments
When it comes to CPPs, the maximum payment is $1,253.59 per month for 2022.
Monthly payments for Old Age Security payments in 2022 is capped at $642.25. This amount is revised every quarter in January, April, July and October as the cost of living increases.
