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Canadian money

Annual RRSP Limits

How much can I contribute to my RRSP? The amount of money you can contribute to your RRSP each year is limited. The annual RRSP contribution limit is 18% of your previous year's annual income up to the maximum shown in the table below, less any company sponsored pension plan contributions.

YearAnnual RRSP Contribution Limit

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You can find your annual RRSP contribution limit on the Notice of Assessment that the Canada Revenue Agency sends you each year.

Frequently Asked Questions

What happens if I contribute more than my annual limit to my RRSP? If you contribute more than $2000 over your annual limit to your RRSP, you are subject to financial penalties imposed by the Canada Revenue Agency (CRA).

If I contribute less than my annual limit to my RRSP, can I carry that amount forward? If you contribute less than your annual limit to your RRSP, you can carry the unused RRSP amount forward to increase your RRSP contribution limit in following years.

For how long can I contribute to my RRSP? You may contribute to your RRSP until Dec 31 of the year in which you turn 71.

Can I transfer money between my RRSPs? You may transfer money between your RRSPs without being charged any tax. Be aware though that some financial institutions will charge a fee for transferring an account.

What is the RRSP contribution deadline? RRSP contributions must be made during the year or by the 60th day of the following year. For example, your 2009 RRSP contribution can be made from Jan 1 2009 up to day 60 of 2010.

Can I withdraw money from my RRSPs? You may withdraw money from an RRSP, but the amount withdrawn is subject to tax. There are some exceptions. You may withdraw up to $25000 tax free as part of the Home Buyers' Plan or $20000 as part of the Lifelong Learning Plan.

What happens in the event of death? In the event of death, the amount of the RRSP at the time is reported as income for the deceased and taxed.

What happens in the event of divorce? In the event of divorce, either party can transfer RRSP money to the other party tax free provided there is a written separation agreement or a court order, and the couple is living apart at the time the assets are being divided.