RRSP FACTS AND DEADLINE FOR MAKING YOUR 2017 CONTRIBUTION

 
 
 
The RRSP contribution limit for 2017 is 18% of your 2016 income or $26,010, whichever is less. The contribution limit for 2018 is $26,230. If you are a member of a registered pension plan, then you need to deduct your pension adjustment (the amount on line 52 of your T4 slip) from the maximum allowable contribution for the year. If you were not able to make the maximum contribution to your plan in any of the years from 1991 to 2017, you can carry forward those amounts and make up the difference in 2018.

You will need an income of $144,500 in 2016 to be able to contribute the maximum allowable contribution of $26,010 to your RRSP for the 2017 tax year. If your income is over $145,722 in 2017, you will be able to take advantage of the maximum RRSP contribution limit for 2018.

For purposes of RRSP contributions, earned income includes salaries, business income, employee profit sharing income, disability pensions (issued under the Canada and Quebec pension plans), taxable alimony or maintenance, and rental income. For 2014 and later years, earned income also includes income contributed to an amateur athlete trust (for purposes of determining the RRSP contribution limit of the trust’s beneficiary). Your earned income is reduced by business losses, rental losses, union dues, employment expenses, and deductible alimony or maintenance paid. Certain types of income such as retiring allowances, investment income, capital gains, pension income and business income earned as a limited partner are not classified as earned income.

The deadline for contributing to your RRSP and deducting the amount from your 2017 income is March 1, 2018.

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