The RRSP season is upon us once again and it is time to take stock of your income in 2009, your RRSP contribution room and the optimal amount that you need to contribute to your RRSP before the March 1st, 2010 deadline, in order to minimize your 2009 taxes.

Maximum RRSP Contribution for 2009

The maximum allowable RRSP contribution for 2009, is the lower of $21,000 or 18% of your 2008 earned income, minus your pension adjustment which reflects your company pension plan contributions. Your pension adjustment is reported in box 52 of your T4 slip.

For RRSP purposes, earned income includes your salary or wages, bonuses, alimony received and rental income. It does not however, include dividends or investment income.

You can find out the exact amount of the maximum contribution you are allowed to make for the 2009 taxation year at the bottom of the first page of your notice of assessment that you received from Canada Revenue Agency after filing your 2008 tax return.

Deadline for RRSP Contributions

For your RRSP contributions to be eligible for deduction against your 2009 income, you need to make your contribution by March 1st 2010.

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