How much can I contribute to my RRSP?

Instead of calculating how much RRSP (Registered Retirement Savings Plan) room you have and risk getting it wrong, I recommend looking on your “Notice of Assessment” which is sent out each year after you file your tax return.  On this form you will find both your TFSA (Tax Free Savings Account) contribution limit as well as your RRSP contribution limit.

If you contribute to an RRSP plan or Pension Plan at work will also need to be considered when determining how much you can contribute.  You are also allowed to over contribute up to $2000.  This is allowed without penalty, however you do not get to deduct the over contribution from your income.  I would use this as a safety net and do not usually recommed intentionally using this room.

Your RRSP contribution room is made up of 18% of your taxable income from the previous year to a maximum in 2010 of $22,000, added to the unused room from previous years as far back as 1991.

The RRSP contribution limit has worked as a great annual savings target for many.  It is very rare to see someone contribute the maximum to their RRSP each year and not have a sizable retirement savings.



This post has been kept general, to find out if an RRSP is right for you, and how to best use this tool to move forward you should discuss it with a professional.  Details can be found on the government of Canada website. This information is assumed correct, but is for information purposes only and it is up to the reader to verify it’s accuracy before acting on anything written on this site.


This website is focused on rules as they impact residence of British Columbia.  My business is focused on Greater Vancouver, Langley and Surrey and I am happy to discuss these options with people residing in this area.