Who Can Contribute?

Any taxpayer who earns employment or business income (self-employed persons) can contribute to an RRSP until December 31st of the year he or she turns 71.
You may contribute to more than one RRSP plan, and you may also invest in an RRSP for your spouse or common-law partner (up to the end of the year in which the spouse or common-law partner reaches age 71).

If you cannot contribute to your RRSP because of age, you can still contribute to a spouse’s RRSP or common-law partner’s RRSP if the spouse or common-law partner is 71 or younger on December 31 of the year.Contributions to individual and spousal RRSPs are deductible by the contributor, as long as the contributions do not exceed the contribution limits.

How much you may contribute?

18% of your previous year’s income, less any pension adjustments

Up to a maximum amount per year as listed below

For your current RRSP contribution limit, refer to your “Notice of Assessment” which follows your annual tax return.

RRSP limit Year
$19,000 2007
$20,000 2008
$21,000 2009
$22,000 2010
$21,000 2009
$22,450 2011
$22,970 2012

When is the Deadline of RRSP Contribution

The last day on which an RRSP contribution may be made for a year is up until the first 60 days of the following year.

What is the tax benefit?

When you invest in an RRSP, you can do so without having to immediately pay tax on it. Subject to certain limits, each dollar contributed to an RRSP lowers your clients’ taxable income by the amount you invest. No tax is payable on these funds until you withdrawn from the RRSP – which is usually much later in life.

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