The deadline for this year’s tax contribution is March 1, 2018.
Contributions made in the first 60 days of the year can be applied against the previous taxation year or in any subsequent year.
Your allowable RRSP contribution for 2017 is the lower of:
- 18% of your earned income from the previous year, or
- The maximum annual contribution limit of $26,010 for the 2017 taxation year, or
- The remaining limit after any company sponsored pension plan contributions.
Other Elements to Consider
- Earned income includes salary or wages, alimony received, and rental income, among other income sources, but does not include items such as investment income.
- Contributions to your employer’s pension plan reduce the amount you can invest in an RRSP.
- Your unused contribution room (annual contribution limit less contributions paid) for a year can be carried forward.
- The maximum annual RRSP contribution limit for 2018 is $26,230. This means that your RRSP contribution limit will reach the maximum once an earned income of $145,722 is reached for the 2018 tax year.
To know the exact amount of your 2017 contribution limit, please refer to the “RRSP Deduction Limit Statement” section of your 2016 notice of assessment as issued by the Canada Revenue Agency.
If you have any questions or would like to discuss your RRSP contribution limits, please contact HGA for assistance.