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:
- line (A) of the RRSP Deduction Limit Statement, on your latest notice of assessment or notice of reassessment;
- a T1028, Your RRSP Information for 2013, that we sent you after processing your 2012 return;
- My Account;
- Quick Access;
- Tax information Phone Service (TIPS).
If we reassess a previous year's return, your revised 2013 RRSP deduction limit will appear on your notice of reassessment or in some cases on a T1028, Your RRSP Information for 2013. 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 return.
How is your 2013 RRSP deduction limit determined
We determined your limit from information on your 2012 and previous year's returns, and from information we keep on record. If your earned income changes, your 2013 RRSP deduction limit may also change. In most cases, we will inform you of any change to your 2013 RRSP deduction limit.
The maximum RRSP deduction limit for 2013 is $23,820. However, if you did not use all of your RRSP deduction limit for the years 1991-2013, you can carry forward the unused room to 2014. Therefore, your RRSP deduction limit for 2013 may be more than $23,820.
The maximum RRSP deduction limit for the subsequent year is as follows:
- 2014 - $24,270
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 2013
For 2013, you can deduct contributions you made to your RRSP from January 1, 1991, to March 3, 2014 (the first 60 days of 2014). 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 2013. Even if you can no longer contribute to your RRSP in 2013 because of your age, you can deduct your unused RRSP contributions up to your RRSP deduction limit.
You cannot deduct the interest you paid on money you borrowed to contribute to an RRSP.
If you made contributions from January 1, 1991 to March 1, 1995, that you did not deduct, and you did not show it on Schedule 7 for 1994, contact us.
You cannot claim a deduction for any of the following:
- 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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