RRSP CONTRIBUTIONS

If you’re staring down the Registered Retirement Savings Plan (RRSP) contribution deadline and feeling the pressure, you’re not alone. Every year, thousands of Canadians scramble to make a last-minute RRSP contribution to reduce their taxable income and boost their retirement savings before time runs out. Whether you’re a procrastinator by nature, a busy professional who meant to contribute earlier, or simply someone trying to make sense of your registered retirement savings plan, this guide is for you.

The rules are simple: contributions made in the first 60 days of 2026 can be applied to your 2025 tax year, but only if you act before the official RRSP contribution deadline. Miss it, and you miss the chance to claim an income tax deduction that could lower your tax bill this year.

If you’re ready to take action, whether that means a quick lump sum RRSP contribution or setting up smarter habits for next year, now is the time. Contribute to your RRSP today and put your money to work for your future.

Confirm the RRSP Contribution Deadline & Understand the “First 60 Days” Window

Before making a last-minute RRSP contribution, it’s crucial to understand exactly how the deadline works. Your RRSP contributions for the 2025 tax year can be made in two time periods:

• January 1 to December 31, 2025: All contributions in the calendar year count toward your 2025 return.
• January 1 to the first 60 days of 2026: This special window allows you to contribute and still apply the deduction to your 2025 income tax return.

This “first 60 days” rule gives Canadians a little extra time to evaluate their taxable income, year-end bonuses, or final paycheques before deciding how much to contribute. But because these contributions technically occur in the next calendar year, the Canada Revenue Agency (CRA) requires you to report them separately on your tax return.

Why First-60-Days Contributions Must Be Filed With the Prior Year

Even though you’re contributing in early 2026, the CRA treats these amounts as eligible for the previous tax year. That’s why your financial institution issues RRSP receipts in two parts:

• One receipt for contributions made January-December 2025
• One receipt for contributions made January 1-60 days into 2026

You must submit both sets when filing your 2025 return to claim your tax deduction accurately.

Review the key RRSP deadlines to make sure you don’t miss your window.

Check Your Personal RRSP Room in Minutes

Before making any last-minute RRSP contributions, take a moment to confirm your RRSP contribution room. It only takes a few minutes and can save you from costly mistakes.

Where to Find Your Contribution Room

You can check your exact limit through:

• CRA My Account
• Your latest Notice of Assessment (NOA)

Both sources show how much room you have available for the 2025 tax year, along with any amounts carried forward from previous years.

How Your RRSP Contribution Room Is Calculated

RRSP room is based on:

• 18% of your previous year’s earned income (up to the CRA’s annual maximum),
• Minus your pension adjustment (PA) if you participate in a workplace pension, and
• Plus any unused room from earlier years.

This calculation ensures your annual contribution limit stays aligned with your income and pension benefits.

Consequences of Over-Contributing

Make sure your lump sum RRSP contribution doesn’t push you over your limit. While the CRA allows a small $2,000 lifetime cushion, anything above that becomes an excess amount and may be subject to a penalty tax until withdrawn.

Verifying your room before you contribute helps you stay tax-efficient and penalty-free.

Once you’ve confirmed your room, make your contribution and stay on track for your retirement goals.

Funding Methods for Last-Minute RRSP Contributions

When you’re making a last-minute RRSP contribution, speed matters. Not all funding methods are created equal; some settle instantly, while others can take days. To make sure your contribution is processed before the RRSP contribution deadline, choose the fastest option available to you.

The Speed Ladder: Fastest to Slowest Methods of Funding Your Retirement Savings

1. Instant Transfer (Fastest)

If your RRSP and everyday bank account are at the same institution, and especially if you use an investment platform that supports instant transfers, this is the quickest way to get money into your registered retirement savings plan.

• Funds typically appear immediately.
• Ideal for lump sum RRSP contributions made on the deadline day.

For true last-minute situations, this should be your first choice.

2. Bill Payment (Same Day, Depending on Cut-Off Times)

Most banks allow you to send money to your RRSP provider using online bill payments.

• In many cases, funds arrive the same day if submitted before the bank’s cut-off (often mid-afternoon).
• Payments made after cut-off usually settle the next business day (which can be too late if you’re right up against the deadline).

Tip: Make bill payments early in the day to avoid timing issues.

3. Internal Transfer From Another Institution (2-3 Business Days)

If your cash is sitting at a different bank or brokerage, an inter-institution transfer can take two to three business days, which is not suitable for a last-minute RRSP.

• Use this only if you still have time before the contribution deadline.
• For last-minute needs, move money earlier or rely on a faster method.

4. Pre-Authorized Debit (PAD): Great for Automation, Not Last Minute Contributions

PADs are perfect for monthly contributions, dollar cost averaging, and building long-term retirement savings.

• Settlement usually takes several business days.
• Not recommended when you need your contribution counted immediately.

Document Everything

When contributing near the RRSP deadline, always keep:

• Screenshots of confirmations, and
• Proof of payment from your bank or investment platform.

These records can help if a contribution posts after the deadline or if the CRA requests verification for your income tax return.

Final Tip

To avoid delays, contribute earlier in the day. Cut-off times and processing batches can shift around busy periods.

Choose the fastest method now to ensure your contribution is counted on time.

How to Contribute to Your RRSP Online (Step-by-Step)

Making a last-minute RRSP contribution online is straightforward once you know the process. Whether you’re adding a lump sum, topping up your annual contribution, or using leftover contribution room, this quick flow will help you get it done before the RRSP deadline.

A Simple 6-Step Process

1. Log in to your account: Sign in to your online banking or investment platform where your registered retirement savings plan is held. Confirm you’re accessing the correct RRSP account, especially if you also have a TFSA, spousal RRSP, or taxable account.
2. Move money or add funds: Choose your funding method: instant transfer, bill payment, or internal transfer. Ensure the cash is available in the source bank account before proceeding.
3. Select your RRSP: If you have multiple savings options (e.g., RRSP, TFSA, non-registered), double-check that you’re contributing to the correct plan to avoid delays or reprocessing.
4. Choose the funding type (lump sum or monthly contributions): Decide between a lump sum contribution or adding to your recurring monthly contributions. If you’re contributing at the last minute, choose the immediate one-time option.
5. Enter your amount and submit: Make sure your amount does not exceed your RRSP contribution limit, including any carried forward room from previous years. Submit the transaction and wait for on-screen confirmation.
6. Save your receipts: Download, screenshot, or save your contribution confirmation. Your official RRSP receipt (needed for your income tax return) will appear in your account or be mailed after processing.

Troubleshooting Common Issues

Wrong payee or account: When using bill payments, ensure you select the correct payee and use the right account/reference number. A mismatch may delay your contribution past the contribution deadline.

Insufficient funds: Verify your source account has enough balance before initiating the transfer. Failed transactions may not clear in time for a retry.

Processing delays: If contributing on or near the deadline, consider calling your broker or bank to confirm your contribution was received and timestamped correctly.

Quick-Win Tax Strategies

When you’re making a last-minute RRSP contribution, a little math can help you decide how much to contribute and how to get the most out of your tax refund. Here are two simple scenarios that may help maximize the value of a registered retirement savings plan.

Note: The examples below are simplified illustrations for informational purposes only and are not tax advice. Always speak with a tax professional for advice or guidance.

1. The Bracket-Edge Nudge

If you’re close to the edge of a tax bracket, even a small lump sum contribution can lower your taxable income enough to save money.

Example: Let’s say your earned income for the 2025 tax year leaves you $1,200 above the next lower tax bracket. Contributing $1,200 to your RRSP could push you down into that lower bracket, reducing your tax bill at a higher rate and boosting your tax deduction.

Why it works: RRSP contributions reduce taxable income dollar-for-dollar (up to your contribution limit), so strategically placing a small amount can generate an outsized benefit.

2. The Refund-Recycling Loop

This common strategy uses your tax refund to build even more retirement savings.

How it works:

• Make an RRSP contribution before the RRSP deadline.
• Claim the deduction on your income tax return.
• Use the refund to either add more RRSP savings (if you still have contribution room), or contribute to your Tax-Free Savings Account (TFSA).

This creates a self-funding loop: your contribution generates a refund, and your refund becomes more long-term savings in your RRSP or TFSA, both of which help you invest and grow your money for future years.

Spousal RRSPs in a Crunch

A spousal RRSP can be a smart move for couples looking to balance retirement savings and minimize future tax liability. The contributing spouse (usually the higher-income earner) gets the income tax deduction, while the receiving spouse, who may be in a lower tax bracket, owns the account and eventually withdraws the funds. This strategy can reduce your combined taxable income over time.

Contribution & Attribution Basics

• Contributions count against the contributor’s RRSP room, not the spouse’s.
• If the receiving spouse withdraws funds within three calendar years, the withdrawal is “attributed” back to the contributor for tax purposes.
• Beyond three years, withdrawals are taxed in the receiving spouse’s hands, often at a lower rate.

Last-Minute Use Cases

Near the RRSP contribution deadline, a lump sum contribution to a spousal RRSP can:

• Maximize your 2025 tax deduction
• Take advantage of unused contribution room
• Help couples balance income in retirement for tax efficiency

For couples with unequal incomes or late-year cash inflows, a spousal RRSP can be an effective last-minute RRSP strategy.

Choosing the Best RRSP Broker in Canada When You’re Down to the Wire

If you’re making a last-minute RRSP contribution, your choice of broker can make all the difference. The right platform ensures your contribution counts before the deadline, your receipts are issued promptly, and your money is invested efficiently.

Key Criteria for Last Minute Contributors

• Instant Funding: Supports same-day or real-time transfers from your bank account.
• Receipt Speed & Visibility: Allows you to download or screenshot RRSP receipts immediately.
• Low Fees: Reduces costs on mutual funds, GICs, and other investments.
• Product Shelf: Offers a range of eligible RRSP investments, including ETFs, GICs, and mutual funds.
• Mobile App Notifications: Alerts you when contributions clear or investments settle.
• Live Support: Access to quick answers via chat or phone is crucial in a tight window.
• Automation Tools: Supports pre-authorized contributions for future years, though less critical for last-minute funding.

Selecting a broker that offers speed, visibility, and support ensures your last-minute RRSP contribution counts for the correct tax year and gives peace of mind during crunch time.

One-Hour “Last-Minute” RRSP Game Plan

When the RRSP deadline is looming, a structured approach can turn panic into productivity. Here’s a minute-by-minute plan to ensure your contribution counts and your savings stay on track.

Minute 0-10: Check Your RRSP Room

Log in to CRA My Account or review your Notice of Assessment to confirm your available contribution room. Double-check for carry-forward amounts or pension adjustments to avoid over-contributing.

Minute 10-25: Make Your Contribution

Choose the fastest funding method: instant transfer, same-day bill payment, or internal transfer. Enter the correct amount, select the RRSP account, and submit. Keep the on-screen confirmation handy.

Minute 25-35: Document Everything

Download or screenshot the confirmation. If your contribution falls in the first 60 days of the next year, make sure you note it for the prior year. Store receipts in a dedicated folder for your tax return.

Minute 35-50: Allocate or Park Cash

Decide whether to immediately invest in mutual funds, GICs, ETFs, or leave the contribution in cash temporarily while you plan your strategy.

Minute 50-60: Set Up Automation

If possible, schedule monthly contributions or pre-authorized debits to build habits for future years. This keeps your retirement savings consistent and reduces year-end stress.

By following this one-hour sequence, you’ll ensure your last-minute RRSP contribution is completed efficiently, documented properly, and ready to grow for your future retirement goals.

Wrap Up: Make Your Last-Minute RRSP Contribution Count

Making a last-minute RRSP contribution doesn’t have to be stressful. By confirming your contribution room, selecting the fastest funding method, and documenting your transactions, you can maximize your income tax deduction and grow your retirement savings with confidence. Even if you contribute cash first and invest later, taking action ensures your money works for you tax-deferred.

Contribute before the deadline. Open or transfer to your RRSP with Questrade. Don’t wait—every minute counts toward your future financial goals.