The deadline to make 2021 RRSP contribution is March 1, 2022. The allowable RRSP contribution limit for 2021 is the lower of:
- 18% of income you reported on your tax return in 2020
- Maximum annual contribution limit of 2021 – $27,830
Plus any unused contribution room carried forward from prior years.
If you have a company pension plan, your RRSP contribution limit is reduced.
Any unused RRSP contribution room can be carried forward indefinitely to be used for future years.
You can also find your RRSP contribution limit & carry-forward room on your 2020 Notice of Assessment.
For more information, visit the official CRA website.
We at SJ Chartered Accountant suggest to make RRSP contributions within your contribution limit as any amount over-contributed is charged penalty of 1% per month by CRA.
We are a CPA – Chartered Professional Accountant firm serving Mississauga, Etobicoke, Toronto & other surrounding areas in the GTA.
Leave a Reply