A taxpayer who has not participated in a Registered Pension Plan (RPP) or a Deferred Profit Sharing Plan (DPSP) may contribute to a Registered Retirement Savings Plan (RRSP) during the year up to the lesser of the following amounts:
18% of their earned income from the previous year;
Contributions
Contributions to an RRSP are deductible for a taxation year if they are made during that year or within 60 days after the end of that year. The annual contribution limit is determined based on the individual’s participation in an RPP or DPSP in the previous year, their earned income for that same year, and the contribution limit established by the CRA for the current year.
In General
An RRSP is a vehicle designed to accumulate tax-sheltered savings for retirement. Contributions are tax-deductible, subject to prescribed limits. In addition, income earned within the plan is not taxable until the funds are withdrawn.
Personal guidance.
Independent experts.
Results that speak for themselves.
