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RRSP contributions & pension adjustments


 

RRSP contributions & pension adjustments


If you pay into an employer plan such as a pension, that might impact your limit. Your Notice of Assessment from the CRA will show you how your pension adjustment affects your RRSP contribution limit.


Here are some of the ways your employer plan can impact your RRSP limits:


Pension adjustments and your RRSP contribution limit: If you belong to a pension plan through your employer or union, the amount you can contribute to your RRSP is decreased.


If you have a defined benefit plan, the CRA will estimate the value of the benefit you earned over the course of the prior year.


If you have a defined contribution or deferred profit sharing plan, the adjustment is the total amount you and your employer contributed during the prior year.


Your Notice of Assessment from the CRA will show you how your pension adjustment affects your RRSP contribution limit.

 

Who can contribute to an RRSP?


You can contribute to an RRSP if you:

  • Have earned income

  • Have a social insurance number

  • Filed a tax return

  • Have RRSP contribution room available

  • Are under 71. The end of the year that you turn 71 is your last opportunity to contribute.

Figuring out how much to contribute to your RRSP is important. Do it right, and you maximize your tax savings now, while setting yourself up for a good income after retirement. Do it wrong, and you could find yourself paying more taxes than you have to.

 

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Mosby and its affiliated entities, including Mosby Insurance Agencies Ltd., Mosby Group, Mosby Company, and Mosby, are committed to a client-first approach, focusing on the needs of individuals over institutions. We empower you to create your future through trust, collaboration, and unbiased professional advisory. Independence is not just the end goal; it is the process.

The information provided is based on current (2024) regulations, laws, and all additional rules applicable to Canadian residents and is accurate to the best of our knowledge as of the date of publication. This information is general in nature and should not be relied upon as a substitute for individual advice in any specific situation.

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