RRSP/PRPP deduction limit statement
This statement shows your deduction limit for your registered retirement savings plan (RRSP) and your pooled retirement pension plan (PRPP).
Your deduction limit is the amount of RRSP/PRPP contributions you can deduct for the next year.
Your deduction limit will appear on line (A) of your statement.
Your statement also shows how we calculated your deduction limit. Our calculation is based on your:
- earned income in the previous year;
- pension adjustments (PAs);
- past service pension adjustments (PSPAs);
- pension adjustment reversals (PARs); and
- unused RRSP deduction room at the end of the previous year
When calculating your deduction limit, we take into account the information you sent us with your previous tax returns and the information we have on file.
Available Contribution Room
The last line of the statement gives you your available contribution room for the next year.
Your available contribution room is your deduction limit minus any unused RRSP/PRPP contributions you reported in past years that you can deduct for next year. Your unused contributions appear on line (B) of your statement.
If the total RRSP/PRPP contributions, including your current and unused contributions, you claim on your return are less than your deduction limit, you have available contribution room to carry forward to the next year.
If your RRSP/PRPP contributions are more than your deduction limit, you have an excess of contributions. You may have to pay tax on this excess amount.
For more information on RRSP/PRPP contribution and deduction rules, see How much can I contribute and deduct?
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