RRSP (registered retirement savings plan)

Your limit is personal, not the headline number

Each year the CRA generally adds new room equal to the lesser of 18% of your earned income from the previous year and the annual dollar limit, which is $33,810 for 2026. That new room is added to any unused room carried forward, and it is reduced if you belong to a pension plan, through your pension adjustment. The result is your RRSP deduction limit.

You do not need to calculate this from scratch. The RRSP deduction limit statement appears on your latest notice of assessment or reassessment and in your CRA account, and the CRA may send Form T1028 when the figure changes. A later assessment or reassessment can change it, so check the most recent one before you contribute.

The first 60 days of the year

RRSP contributions are counted in two periods for each tax year: roughly March to December of that year, and the first 60 days of the following year. A contribution made in that second period can be deducted on the earlier year’s return or saved for a later one. The CRA’s 2025 page shows the window closing on March 2, 2026, so confirm the exact last day each year rather than assuming March 1.

Issuers have until May 1 to send contribution receipts, but a late receipt does not extend your filing deadline. Contact the issuer if you are missing one. If you decide not to deduct all of your contributions, they become unused contributions that carry forward, and you track them on Schedule 7.

An illustrative example

Suppose someone earned $100,000 in 2025, has no pension plan and has no unused room from earlier years. Eighteen per cent of $100,000 is $18,000, which is below $33,810, so $18,000 of new room arises for 2026. If they contribute $10,000 in February 2027, within the first 60 days, they can choose whether to deduct it for 2026 or carry it forward. The figures are illustrative only.

Withdrawals and common mistakes

Money taken out of an RRSP is generally taxed in the year you receive it, so the deduction you claim now is not permanent tax savings. Withdrawing under programs such as the Home Buyers’ Plan follows separate rules.

Going over your limit can be costly. Excess contributions above a $2,000 cushion are generally taxed at 1% per month, and that cushion has an age condition. Interest on money borrowed to contribute and plan administration fees are not deductible. Contributions are also limited by age: you can generally contribute until December 31 of the year you turn 71.

What to discuss with your accountant

Bring your latest notice of assessment, any Form T1028, your contribution receipts and any pension adjustment information you have. Ask whether to deduct this year or carry the deduction forward, and how an RRSP fits alongside a TFSA or FHSA.