Registered Retirement Savings Plans (RRSP)

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RRSP Quick Facts
Who can contribute to an RRSP?

  • If you have earned income, you can contribute to an RRSP up until the year you turn 69
  • Contributions made in the first 60 days of 2007 can be applied against either your 2006 or your 2007 contribution.

How much can you contribute?
Continue reading RRSP Quick Facts (pdf)

Maximizing your RRSP Contributions
Your RRSP is the key to beating inflation, saving taxes and ensuring a financially healthy retirement.
Unless you are maximizing your RRSP contributions each and every year, you are likely cheating yourself out of significant benefits at retirement. In order to take advantage of tax-free compounding over time, it is vital to contribute as much money every year as you can, and as early as possible. If you’re among the many Canadians who have trouble coming up with your maximum contributions every year, following are some strategies to help you increase the overall amount of your contribution.

Know Your Contribution Limit
If you are not a member of a pension plan, your limit is 18% of your previous year’s earned income to a maximum of $21,000. If you are a member of a pension plan, your limit is 18% of your previous year’s earned income to a maximum of $21,000 less your pension adjustment (PA) and your past service pension adjustment (PSPA). Your RRSP contribution limit can be found on the Canada Revenue Agency (CRA) assessment from your previous year’s tax return.

Carry Forward
You are allowed to carry forward any unused contribution room from 1991 onwards. This means that if you had one or more years when you did not make your maximum contribution, you can carry forward this amount indefinitely and add it to your contribution amount. For example, if in 2009 your maximum contribution level was $21,000 but you contributed $18,500, the extra $2,500 that you could have contributed that year is carried forward to your amount for your 2010 contribution.

So, if your 2010 contribution is $22,000, you could contribute as much as $24,500.
Continue reading Maximizing your RRSP Contributions (pdf)