What’s my RRSP contribution limit?
Find out your current registered retirement savings plan (RRSP) contribution limit by using this calculator.
Putting money into a registered retirement savings plan (RRSP) is one of the best ways to save for retirement. Some people choose to contribute a lump sum to their RRSP, just before the annual deadline, while others prefer to contribute regularly through automatic deposits. Whichever option you choose, be aware that there’s a limit to how much you can contribute to your RRSP in any given year. The RRSP contribution room calculator above will get you the numbers you need, but keep reading for more information on RRSP contribution limits.
An RRSP is a savings account registered with the Canadian government. It’s designed to help Canadians save for retirement. RRSP contributions are tax-deductible, meaning they can reduce your taxable income for that tax year, but the deductions can also be delayed and carried forward to deduct in a future year.
Any investment growth or income earned within an RRSP is exempt from annual tax. You must, however, pay tax at the time of withdrawal—ideally, when you’re in retirement or otherwise in a lower tax bracket than you are today.
These tax advantages make RRSPs a valuable tool for retirement saving. However, there are limits on how much you can contribute to your RRSP in any given year. Make sure you know your RRSP limit to avoid unnecessary tax penalties.
While RRSP rules apply to every Canadian, each of us have our own RRSP contribution limit. There are three factors that determine your individual contribution limit:
|Tax year||Contribution limit|
The deadline for RRSP contributions for the 2022 tax year is March 1, 2023. Contributions made in the first 60 days of the year can be applied to the previous taxation year.
After the Canada Revenue Agency (CRA) processes your tax return, it sends a Notice of Assessment (NOA), which includes your next year’s contribution limit. This notice also shows your unused contribution room. You can also call your local Tax Information Phone Systems (TIPS) number, and be sure to have your SIN and previous tax return ready. Alternatively, you can register for My Account with CRA to view your RRSP limit, track your refund, make updates to your return and monitor payments.
If you overcontribute to your RRSP by more than $2,000, you will be subject to a penalty tax. Typically, the penalty is 1% per month on the excess contribution for as long as it remains in your account. You can stop the penalty from growing if you withdraw the excess amount. (Read more about what to do if you have overcontributed to your RRSP.)
You can open an RRSP at any age. You can then contribute to your RRSP until Dec. 31 of the year you turn 71. At that time, you must either cash out your RRSP, convert it to a registered retirement income fund (RRIF) or purchase an annuity.
If you contribute to a spousal RRSP, you can do so until Dec. 31 of the year your spouse or common-law partner turns 71.
You can hold the following types of investments inside your RRSP:
You can open an RRSP with a bank, credit union or trust company, which can be a good option for those who want the option of speaking with someone face-to-face. In addition, discount online brokers and robo-advisors allow you to set up and manage your own RRSP account in minutes online, from the comfort of your couch.
There are two programs you can use to take money out of an RRSP plan without incurring tax: Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP).
The HBP allows you to take up to $35,000 out of your RRSP ($70,000 per couple) to put towards the down payment of a first home. You aren’t taxed on the withdrawal, but you’ll have to repay your RRSP over 15 years, starting two years after the withdrawal.
The LLP allows you to withdraw up to $10,000 a year (or up to $20,000 in total) to help you or your spouse cover the costs of post-secondary education. You can’t use it for your children’s education, though. Participants must make repayments over 10 years starting two years after their last eligible withdrawal, or five years after the first withdrawal, depending on which due date comes first.
If you’re looking at your RRSP as you’re prepping for tax season, there’s more to know. For more information on the deadline to file your 2022 taxes, which tax bracket you fall into, and what you can claim, read our 2022 income tax guide for Canadians.
This is an editorially driven article or content package, presented with financial support from an advertiser. The advertiser has no influence on the creation of the content.
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