Registered Retirement Savings Plans (RRSPs) are an effective way for most Canadians to save for retirement. In order to be effective though, you need to know deadlines and contribution limits for the 2023 tax year.
If you’re considering an RRSP account but don’t know if it’s the right fit for you, check out our blog, ‘What you need to know about RRSP and TFSA contributions.’
When is the 2023 RRSP Contribution Deadline?
The RRSP contribution deadline is February 29, 2024 for the 2023 tax year. This provides 60 days after the start of the year to make final contributions. Any contributions you make will reduce your earned income for 2023 and you may receive a refund when you file your income taxes.
What is the contribution limit?
For 2023, the contribution limit is 18% of earned income reported on your tax return the previous year, up to a maximum of $30,780. In 2024, the dollar limit will be $31,560.
How much you can contribute is also based on your earned income, as well as how much you’ve contributed previously, and any “carry-forward” room you have from previous years. Your contribution limit will also be impacted by any employer sponsored pension plan you may have.
The Canada Revenue Agency allows you to carry forward any unused contribution room indefinitely. Which means you can add this amount to any contributions you make in future years.
How can you know your individual contribution limit?
Your contribution limit and unused contribution room from previous years is shown on your notice of assessment. If you have any questions about your limit, or would like to make a contribution before year-end, contact us! We would be happy to help you plan for your retirement.
More resources
- Planning for retirement early: When planning for a financially secure future, you need to start early. Read more here.
- Investment basics: If you’re wanting to start investing, but are not sure where to start, we’re here to help! Learn important terms and investment categories to help you get started on the right foot with the investment basics you need to know. Read more here.
