What’s the maximum I can contribute to my RRSP?

As a general rule you can contribute up 18% of your income.

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by MoneySense staff
January 18th, 2013

Online only.

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cash_stack_322Up to 18% of your income to a maximum of $22,970 for the 2012 tax year. For 2013, the maximum will be $23,820. But if you didn’t max out your contributions in previous years (and most people didn’t) you can probably put in much more. Check the notice of assessment form the government sent you after processing last year’s tax return. The amount you can contribute will appear on the form.

2 comments on “What’s the maximum I can contribute to my RRSP?

  1. I know people who have not contributed to a RRSP .and have not paid in to a Company Pension .You wonder Why ? They think they can live on OAS and Canada pension . They will find out the hard way .Of course some people know how to live by there means. Don't travel ,No mortgage ,No new car ,etc. People with no Company Pension but as much as you can afford early in your working career.It will pay off for you.

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  2. The $500,000 in the article is also Taxable when removed. Not mentioned in the article. So you need to take that into consideration. You can probably plan on at least a 30 t0 35 percent tax rate. Remember you also have CPP and Old Age pensions which become part of your total income for tax catagory. You may also have a Company Pension. Also the Old Age can be clawed back (all or part) based on your total income etc.
    It would be great if the amount of RRSP you have at 71 years, when you must remove it, would not be taxed at that time or set a max. amount not to be taxed ie $500,000 and anything above that becomes taxable – More insentive to buy into RRSP etc.
    Also, they should bring back no Capital Gains on Property designated as a Vacation Property (one only per household) when sold after owner(s) turn 60 or if sold before age 60 invested directly into another Vacation Property within 6 months. Allowed to do once in a lifetime. Also no tax when such property is willed to a family member(s).

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