How contributions affect your RRSP deduction limit

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What is your RRSP deduction limit?

How is your RRSP deduction limit determined?

Who can contribute to an RRSP, PRPP, or SPP?

What is the deadline to contribute to an RRSP, PRPP, or SPP for the purpose of claiming a deduction on your 2021 return?

What if you contribute more than your RRSP deduction limit?

What RRSP, PRPP, or SPP contributions can you deduct on your tax return?

What is not considered an RRSP, PRPP, or SPP contribution?

Can contributions be made to a deceased individual’s RRSP, PRPP, or SPP?

What is your RRSP deduction limit?

Your registered retirement savings plan (RRSP) deduction limit, is the maximum amount you can deduct from contributions made to your RRSPs, PRPP, SPP and to your spouse’s or common-law partner’s RRSP or SPP for a year.

Note

Certain types of qualifying income transferred to your RRSPs are excluded from the calculation of your RRSP deduction limit.

How is your RRSP deduction limit determined?

The Canada Revenue Agency generally calculates your RRSP deduction limit as follows:

Plus

Plus

Minus

 

If you want to calculate your RRSP deduction limit yourself, see chart 3 of Guide T4040, RRSPs and Other Registered Plans for Retirement.

Who can contribute to an RRSP, PRPP, or SPP?

Generally, you can contribute to your RRSP, PRPP, or SPP:

You can contribute to your spouse’s or common-law partner’s RRSP or SPP until December 31st of the year that they turn 71 years of age.

What is the deadline to contribute to an RRSP, PRPP, or SPP for the purpose of claiming a deduction on your 2021 return?

Contributions made to your RRSP, PRPP or SPP or your spouse's RRSP or SPP from March 3, 2021 to March 1, 2022 qualify.

What if you contribute more than your RRSP deduction limit?

Generally, you have to pay a tax of 1 percent per month on your contributions that exceed your RRSP deduction limit by more than $2,000.

For more information, go to what happens if you go over your RRSP deduction limit?

What RRSP, PRPP, or SPP contributions can you deduct on your tax return?

You can claim a deduction for:

You cannot claim a deduction for:

What is not considered an RRSP, PRPP, or SPP contribution?

The following are not considered to be an RRSP, PRPP, or SPP contribution for the purpose of claiming a deduction on your tax return. Find out the special rules that apply if you:

Amounts you transfer directly to your RRSP, PRPP, and SPP do not affect your RRSP deduction limit. However, you may need to include an amount in income and claim an offsetting deduction. See transferring certain types of payments for information about the special rules that apply.

Can contributions be made to a deceased individual’s RRSP, PRPP, or SPP?

No one can contribute to a deceased individual’s RRSP, PRPP or SPP after the date of death.

But, the deceased individual’s legal representative can make contributions to the surviving spouse’s or common-law partner’s RRSP and SPP. The contribution must be made within the year of death or during the first 60 days after the end of that year.

Contributions made to a spouse’s or common-law partner’s RRSP or SPP can be claimed on the deceased individual’s tax return, up to that individual’s RRSP deduction limit, for the year of death.

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