There are contribution limits on RRSPs.
To find out the exact amount you can contribute for the current year, check your most recent Notice of Assessment from the CRA.
As a guideline, your allowable RRSP contribution for the current year is the lower of:
- 18% of your earned income from the previous year
- The maximum annual contribution limit for the current tax year
- The remaining limit after any company sponsored pension plan contributions
Maximum RRSP contribution limits for 2013-2020
|Year||Contribution Limit Per Year|
If you withdraw funds from your RRSP, you will face withholding taxes. This amount must be held back by the RRSP provider and sent to the government on your behalf. Withdrawals must also be declared as income on your tax return at the end of the year.
Withholding Tax Rates
Effective January 1, 2018, the following withholding tax rates apply:
|Amount of RRSP Withdrawal||All Provinces Except Quebec||Quebec|
|Up to and including $5,000||10%||20%|
|$5,000.01 to $15,000||20%||25%|
|More than $15,000||30%||30%|