How contributions affect your RRSP deduction limit

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.

How is your RRSP deduction limit determined

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

your unused RRSP deduction room at the end of the preceding year

Plus

The lesser of the two following items:
- 18% of your earned income in the previous year
- the annual RRSP limit (for 2023, the annual limit is $30,780)
That exceeds one of the following items:
- your pension adjustment (PA)
- your prescribed amount for connected persons

Plus

your pension adjustment reversal (PAR)

Minus

your net past service pension adjustment (PSPA)

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:

until December 31st of the year you turn 71 years of age
when you have an available RRSP deduction limit

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 2023 return

Contributions made to your RRSP, PRPP or SPP or your spouse's RRSP or SPP from March 2, 2023 to February 29, 2024 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 Excess Contributions

What RRSP, PRPP, or SPP contributions can you deduct on your income tax and benefit return

You can claim a deduction for:

contributions you made to your RRSP, PRPP or SPP
contributions you made to your spouse’s or common-law partner’s RRSP or SPP
your unused RRSP, PRPP or SPP contributions from a previous year

You cannot claim a deduction for:

amounts you pay for administration services for an RRSP
brokerage fees charged to buy and sell within a trusteed RRSP
the interest you paid on money you borrowed to contribute to an RRSP, PRPP, or SPP
any capital losses within your RRSP
employer contributions to your PRPP

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.

Forms and publications

Guide T4040, RRSPs and Other Registered Plans for Retirement

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