RRSP deduction limit

What’s in this article?

 

What is this?

Your Registered Retirement Savings Plan (RRSP) deduction limit is the maximum amount you can deduct from contributions you made to your RRSPs, or to your spouse’s or common-law partner’s RRSP for the year.

Your RRSP deduction limit is calculated by Canada Revenue Agency (CRA) based on your previous years’ income tax return and other information such as previous year's income, pension adjustments, past service pension adjustments, pension adjustment reversals, and any unused RRSP deduction room not used at the end of the previous year. Click this link for the current year’s RRSP deduction limit.

Your RRSP deduction limit may be more than the amount for a given year if you didn’t use your entire RRSP deduction limit in prior years. Your unused RRSP deduction limit is carried forward to future years.

 You can find your RRSP deduction limit for a given year:

  • At the bottom of your latest notice of assessment or reassessment– amount (A) of the RRSP Deduction Limit Statement section;
  • On the Canada Revenue Agency (CRA) website by logging in to My Account(if you're registered);
  • By calling the RRSP Tax Information Phone Service (TIPS) hotline at 1-800-267-6999; or
  • On your T1028: Your RRSP Information for 2015.

 

Am I eligible?

If you contributed to your or your spouse’s or common-law partners’ RRSP, you can deduct RRSP contributions for the year. The RRSP deduction limit for a given tax year can be found on your latest notice of assessment or reassessment. You can also log in to CRA’s My Account service or contact them to obtain your RRSP deduction limit for the current tax year.

Note: If you contribute more than $2,000 over your RRSP deduction limit, you may have to pay a tax of 1% per month on those contributions. If you made excess contributions to your RRSP, you must complete and submit to the CRA form T1-OVP: Individual Tax Return for RRSP Excess Contributions to calculate your penalty. Click this link for more information on excess contributions.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

      1. Click the PREPARE tab.
      2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:


      3. Click the checkbox labelled I contributed to an RRSP/PRPP or have unused contributions.
      4. Scroll to the bottom of the page and click Continue.
      5. Click the RRSPS & INVESTMENTS icon. You will find yourself here:

      6. Under the RRSPS section, click the checkbox labelled Contributions to RRSPs or any other retirement fund or account (Schedule 7).
      7. Scroll to the bottom of the page and click Continue.
      8. On the Contributions to RRSPs or any other retirement fund or account page, enter your RRSP deduction limit in the field labelled RRSP/PRPP deduction limit for 2015. 

 

Note: The RRSP/PRPP deduction limit for 2015 is amount (A) of the RRSP Deduction Limit Statement section of your 2014 Notice of Assessment or Notice of Reassessment. You can also find the deduction limit on your T1028: Your RRSP/PRPP information for 2015.

 

Where can I learn more?