RRSP Contribution Limit

An RRSP is a registered retirement savings plan with the government to which you or your spouse can contribute. The income earned from the funds contributed to your plan accumulates tax-free in your RRSP. You are able to contribute an amount to your RRSP account (up to your contribution limit) up to December 31st of the year in which you turn 71 years of age. Deductible RRSP contributions can be used to reduce your tax liability for the year. The deadline for contributing to an RRSP for the 2019 tax year is March 2, 2020.  Some common questions you may be asking yourself have been answered below.

What is my RRSP contribution limit?

Your RRSP contribution limit for 2019 can be found using one of the following methods:

  1. Check your 2018 Notice of Assessment from CRA
  2. Check online on CRA’s “My Account” service
  3. Perform the following calculation:

A) Your unused RRSP deduction room carried forward from 2018


B) The lesser of the following two amounts:

  • 18% x 2018 earned income
  • The annual RRSP limit (for 2019, the annual limit is $ 26,500)


2018 Pension Adjustment (reported on 2018 T4 slip) or a prescribed amount


C) Your pension adjustment reversal


D) Your net past service pension adjustments

What happens if I overcontribute?

It is imperative that you check your RRSP contribution limit before you make any contributions to your plan.  CRA tracks RRSP overcontributions and charges penalties on overcontributions exceeding $2,000.  If you belong to a pension plan, then it is important to note that the pension adjustment reversals and net past service pension adjustments will affect your RRSP contribution room.

What happens if I don’t contribute to my RRSP?

If you decide to not contribute any amounts to your RRSP account, your RRSP contribution limit is carried forward indefinitely.

We can assist you with all your RRSP questions and give you personalized tax advice. Be sure to contact Ritchie Shortt & Tully LLP if you have any questions or would like our assistance!

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