Help me understand this bonus & RRSP scenario.

You'll need to take it as cash and pay the taxes now to self direct into an RRSP. When you file you're 2023 taxes next year you'll get the taxes refunded based on your self directed RRSP and the marginal tax rate you're in.

If the company matches your contribution, take that. If not take it as cash and get the refund next year.

You will have to pay taxes when you take the cash.

You could also find out if your company’s RRSP plan lets you transfer money out in-cash without penalty. If so, you can just accept the bonus directly into your RRSP and the transfer it to a personal RRSP. (Keyword transfer it, NOT withdraw it)

Not all company RRSP plans allow transfers. Check if yours does.

fordmaple wrote: ↑ You'll need to take it as cash and pay the taxes now to self direct into an RRSP. When you file you're 2023 taxes next year you'll get the taxes refunded based on your self directed RRSP and the marginal tax rate you're in.

If the company matches your contribution, take that. If not take it as cash and get the refund next year.

If I contribute before March 1st this year, it would count as 2022 contribution, meaning I would get the refund as soon as I file taxes this year. This way I would not lose anything. Correct?

Assuming you take the cash, you get say 7000, but the 10k gets added to your T4. You would need to use your own 3000 to make up the 10k RRSP contribution. If all goes accordingly you should get back the 3000 plus any tax savings. Try out some RRSP tax savings calculators to run your scenario.

if you contribute before March 1, it could count as 2022 OR 2023 contribution. However, it seems that you did not get your 10k bonus YET, so that will be 2023 income. Keep that in mind. If you are using it for the 2022 contribution, which does NOT have the 10k bonus (ie, your tax savings might be based on a lower income in 2022 vs 2023 with the bonus).

If you choose to use the 2023 contribution route you will be out 3k of your own money until you file your 2023 taxes in March 2024.