A taxpayer who is not a member of an RPP or DPSP may contribute to an RRSP in the year a maximum amount equal to the lesser of the following amounts :
18% of previous year's earned income;
The annual limit applicable for the year, as indicated in the following table.
Year | RESP annual limit | Income required for the previous year to reach the limit |
|---|---|---|
2024 | 31 560 $ | 175 333 $ |
2023 | 30 780$ | 171 000 $ |
2022 | 29 210 $ | 162 277 $ |
2021 | 27 830 $ | 154 611 $ |
2020 | 27 230$ | 151 277 $ |
Contributions
RRSP contributions are deductible in the year they are made or if made within the first 60 days of the following year. The annual contribution limit is based on the individual's participation in an RPP or DPSP for the previous year, the individual's earned income for that year and the contribution limit set by CRA for the current year.
General
An RRSP is a vehicle for accumulating tax-sheltered savings for retirement. RRSP contributions are tax deductible, subject to prescribed limits. In addition, income earned in an RRSP is not taxable until the funds are withdrawn.