RRSP deduction limits

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Feb 28th, 2020 11:17 am

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Feb 13th, 2020 3:54 pm

Shepherd214 [OP]: Sr. Member; Dec 26, 2005; 621 posts; 151 upvotes

Feb 13th, 2020 3:54 pm

RRSP deduction limits

According to my assessment my 2019 RRSP deduction limit is $90K. Unused RRSP deduction limit at the end of 2018 $72K plus additional deduction limit based on 2018 income $18K. The CRA site says the RRSP contribution limit for 2019 is 18% of earned income you reported on your tax return in the previous year, up to a maximum of $26,500. So how much can I actually contribute? I've tried searching online and haven't been able to find a definitive answer.

11 replies

Feb 13th, 2020 7:33 pm

bubak: Deal Addict; Jul 15, 2009; 2991 posts; 2264 upvotes

Feb 13th, 2020 7:33 pm

You can deduct $90k. How much you can contribute depends on how much (if anything) you've contributed already. If you haven't contributed anything that you haven't deducted yet, then you can contribute the full $90k.

The $26.5k maximum is how much new deduction room you can get each year.

+1

Feb 13th, 2020 7:43 pm

TrickleDownEconomics: Member; Dec 31, 2018; 248 posts; 382 upvotes

Feb 13th, 2020 7:43 pm

You can find find your 2019 contribution room on your Notice of Assessment for the taxes you filed in 2019.

In short:

2019 deduction limit (what you can deduct against your 2019 income when you file in 2020)= 2019 contribution limit (what you can contribute starting March 02, 2019) + unused contributions that you can deduct against 2019 income

So, you can re-arrange that equation to figure out your contribution room as well.

+1

Feb 26th, 2020 5:26 pm

emale: Deal Addict; Apr 18, 2009; 1221 posts; 713 upvotes; Toronto/Plano/Atlant…

Feb 26th, 2020 5:26 pm

My CRA account says , as of Feb 26 2020

1. 2019 RRSP deduction limit is S200

2 . Unused RRSP contributions available to deduct for 2019 is $100 . I have already contributed the 100$.

Does that mean I can deduct $300 ( $100 I contributed plus the $200) for my 2019 taxes ?

Feb 26th, 2020 8:32 pm

bubak: Deal Addict; Jul 15, 2009; 2991 posts; 2264 upvotes

Feb 26th, 2020 8:32 pm

emale wrote: ↑ My CRA account says , as of Feb 26 2020

1. 2019 RRSP deduction limit is S200

2 . Unused RRSP contributions available to deduct for 2019 is $100 . I have already contributed the 100$.

Does that mean I can deduct $300 ( $100 I contributed plus the $200) for my 2019 taxes ?

No. Deduction limit $200 means you can deduct $200. You've already contributed $100 so you can contribute up to $100 more to get up to the $200 you can deduct.

Feb 26th, 2020 8:44 pm

ksgill: Deal Fanatic; Mar 24, 2008; 6278 posts; 2752 upvotes; Toronto

Feb 26th, 2020 8:44 pm

Shepherd214 wrote: ↑ According to my assessment my 2019 RRSP deduction limit is $90K. Unused RRSP deduction limit at the end of 2018 $72K plus additional deduction limit based on 2018 income $18K. The CRA site says the RRSP contribution limit for 2019 is 18% of earned income you reported on your tax return in the previous year, up to a maximum of $26,500. So how much can I actually contribute? I've tried searching online and haven't been able to find a definitive answer.

If you have to ask, you can contribute 90k, just as your deduction limit states.

Feb 27th, 2020 1:46 pm

mkannuri: Deal Addict; Oct 25, 2007; 2811 posts; 1008 upvotes; Mississauga

Feb 27th, 2020 1:46 pm

Guys quick question as i am not able to find the answer online (account is out of town).
I have completed my contribution for 2019 already and today i made new contribution for 2020 (hoping to catch the last minute dip in the market) and wondering if CRA will treat as a overpayment with penalty?

Feb 27th, 2020 2:01 pm

fastlayne: Deal Addict; Nov 18, 2007; 3531 posts; 640 upvotes; Corktown

Feb 27th, 2020 2:01 pm

For the first 60 days of the calendar year, you will get a RRSP contribution slip that can be used for 2019 or 2020.

Go ahead contribute another $2,000. You can be over by that amount at any moment in time without penalty.

+1

Feb 27th, 2020 2:30 pm

mkannuri: Deal Addict; Oct 25, 2007; 2811 posts; 1008 upvotes; Mississauga

Feb 27th, 2020 2:30 pm

fastlayne wrote: ↑ For the first 60 days of the calendar year, you will get a RRSP contribution slip that can be used for 2019 or 2020.

Go ahead contribute another $2,000. You can be over by that amount at any moment in time without penalty.

Thanks @fastlayne appreciate your quick response. for 2019 i already contributed last november (2019) itself. Now another 10k contributed and hoping to claim for 2020.
So i should see two contribution slips one for 2019 and another for 2019/2020 with the amount i just paid and can be used for claiming 2020 right?

Feb 27th, 2020 3:27 pm

fastlayne: Deal Addict; Nov 18, 2007; 3531 posts; 640 upvotes; Corktown

Feb 27th, 2020 3:27 pm

I normally get a slip that totals all contributions for 2019 in January.

For any contributions in the first 60 days of the year, I get a slip for every contribution.

YMMV.

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Feb 27th, 2020 6:43 pm

JUnit: Deal Addict; Dec 28, 2007; 1196 posts; 801 upvotes

Feb 27th, 2020 6:43 pm

mkannuri wrote: ↑ Thanks @fastlayne appreciate your quick response. for 2019 i already contributed last november (2019) itself. Now another 10k contributed and hoping to claim for 2020.
So i should see two contribution slips one for 2019 and another for 2019/2020 with the amount i just paid and can be used for claiming 2020 right?

You should claim all the contributions made in the first 60 days of 2020 on your 2019 taxes. Deduct up to your 2019 deduction limit; the remaining contributions will show up on your notice of assessment as "unused contributions" that you can deduct next year. Just be careful not to overcontribute before you know what your 2020 contribution limit is.

+1

Feb 28th, 2020 11:17 am

mkannuri: Deal Addict; Oct 25, 2007; 2811 posts; 1008 upvotes; Mississauga

Feb 28th, 2020 11:17 am

JUnit wrote: ↑ You should claim all the contributions made in the first 60 days of 2020 on your 2019 taxes. Deduct up to your 2019 deduction limit; the remaining contributions will show up on your notice of assessment as "unused contributions" that you can deduct next year. Just be careful not to overcontribute before you know what your 2020 contribution limit is.

Thanks JUnit, will inform the accountant about it.
for now the new contributions made are below the expected room left for 2020 and i am safe then.

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