How much can I contribute and deduct?
Generally, the amount you can contribute to your RRSPs or your spouse or common-law partner's RRSPs, for a given tax year without tax implications is determined by your RRSP deduction limit. This is often called your "contribution room." Amounts that you contribute above this limit may be considered excess contributions (over-contributions).
Your RRSP deduction limit is the amount of RRSP contributions that you can deduct on your tax return for a given year.
What is my RRSP deduction limit?
You can find your RRSP deduction limit by going to one of the following:
- amount (A) of the RRSP Deduction Limit Statement, on your latest notice of assessment or notice of reassessment;
- a T1028, Your RRSP Information for 2014, that we sent you after processing your 2013 income tax and benefit return;
- My Account;
- Tax information Phone Service (TIPS).
If we reassess a previous year’s income tax and benefit return, your revised 2014 RRSP deduction limit will appear on your notice of reassessment or in some cases on a T1028, Your RRSP Information for 2014. We will also send you a T1028 with a new RRSP deduction limit if your RRSP deduction limit has changed for reasons other than a reassessment of a previous year’s income tax and benefit return.
How is your 2014 RRSP deduction limit determined
We determined your limit from information on your 2013 and previous years’ income tax and benefit returns, and from information we keep on record. If any of that information changes, your 2014 RRSP deduction limit may also change. In most cases, we will tell you about any change to your 2014 RRSP deduction limit.
The RRSP limit for 2014 is $24,270. However, your 2014 RRSP deduction limit may be more than $24,270 if you did not use your entire RRSP deduction limit for the years 1991 to 2013. Your unused RRSP deduction room will be carried forward to 2014.
The maximum RRSP deduction limit for the subsequent year is as follows:
- 2015 - $24,930
If you want to calculate your contribution room yourself, see chart 3 of Guide T4040, RRSPs and Other Registered Plans for Retirement.
Contributions you can deduct for 2014
For 2014, you can deduct contributions you made to your RRSP or SPP from January 1, 1991, to March 2, 2015. You can also deduct contributions you made to your PRPP from January 1, 2014 to March 2, 2015 (do not include your employer’s contributions). You can deduct these contributions if you did not deduct them for any other year, and if they are not more than your RRSP deduction limit for 2014. Even if you can no longer contribute to your RRSP in 2014 because of your age, you can deduct your unused RRSP contributions up to your RRSP deduction limit.
- amounts you pay for administration services for an RRSP;
- brokerage fees charged to buy and dispose of securities within a trusteed RRSP;
- the interest you paid on money you borrowed to contribute to an RRSP;
- any capital losses within your RRSP.
Generally, amounts you transfer directly to your RRSP do not affect your RRSP deduction limit. However, you may need to include an amount in income and claim an offsetting deduction. See Transferring for information about the special rules that apply.
Forms and publications
- Guide T4040, RRSPs and Other Registered Plans for Retirement
- Information Circular IC72-22R Registered Retirement Savings Plans
- Interpretation Bulletin IT-124R Contributions to Registered Retirement Savings Plan
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