Contribution Limits to RRSPs

The amount that you can contribute to your RRSP depends on whether you’re a member of a pension plan, the type of pension plan you have and the amount of earned income you had in the previous calendar year. The current year’s RRSP contribution dollar limit can be found on the CRA website.

No Pension Plan

If you are not a member of a pension plan, your maximum contribution to your RRSP is 18% of your previous year’s “earned income” up to a maximum limit, set each year. If you are a member of a pension plan, your annual RRSP contribution room will be reduced by your previous year’s pension adjustment.

What Is Earned Income?

The Income Tax Act has defined earned income for RRSP contribution purposes as:

  • Employment income
  • Royalties
  • Alimony received from former spouse
  • Net business income from a sole proprietorship or partnership
  • Net rental income
  • CPP/QPP disability pension (only)

Earned income does not include:

  • Pension benefits (including CPP and OAS)
  • Retirement allowances
  • Death benefits
  • Investment income
  • Alimony paid to a former spouse
  • Amounts received from RRSPs, DPSPs, RRIFs or annuities

RRSP Contribution Limits

Are you smarter about your RRSP contribution limit? Find out, take the quiz.

Begin Quiz