RRSP Contribution Calculator

💡 How RRSP Room Works

Your RRSP contribution room is calculated as 18% of your previous year's earned income (up to the annual maximum of $33,810), plus any unused room from previous years, minus any pension adjustments from employer pension plans. The RRSP is one of Canada's most powerful tax-planning tools. Contributions are tax-deductible, meaning they reduce your taxable income in the year you contribute. If you earn $80,000 and contribute $10,000, you are only taxed on $70,000. The investments inside your RRSP grow tax-deferred until withdrawal. When deciding between an RRSP and a TFSA, consider your current vs. expected future tax bracket. If you are in a higher bracket now than you expect in retirement, the RRSP's up-front deduction saves more tax than you will pay on withdrawals later. If your income is lower now, a TFSA may be more efficient since withdrawals are completely tax-free. Spousal RRSPs allow higher-income earners to contribute to their spouse's RRSP using their own room, splitting retirement income between two people and potentially lowering the household's overall tax bill. Note the three-year attribution rule: if your spouse withdraws within three calendar years of your last spousal contribution, the withdrawal is taxed in your hands. The RRSP contribution deadline for the previous tax year is 60 days after the year ends (typically March 1). You must convert your RRSP to a RRIF or annuity by December 31 of the year you turn 71.