Registered Retirement Savings Plan

An RRSP is a tax-efficient investment strategy used to preserve assets for the purposes of retirement. 

Benefits of an RRSP

  • An RRSP allows for tax deferred compounding of your investment income and gains until the funds are withdrawn. 
  • Contributing to an RRSP provides a reduction of your taxable income in the year of contribution or the first 60 days of the following year. 
  • Contributing on an annual basis can help build a retirement nest egg. 

 Determining your deduction limit

To determine your personal deduction limit, it is best to look at your most recent Notice of Assessment, which was returned by CRA with your most recent tax return. If, for some reason, you cannot locate the Notice of Assessment, the information is available through the automated Tax Information Phone Service (T.I.P.S.) at 1.800.267.6999.

 The deduction limit is calculated as:

  • 18% of earned income for the preceding year to the savings limit (shown below)
  • Less pension adjustments and past service pension adjustments
  • Plus pension adjustment reversals
  • Plus unused deduction room from previous years


To receive additional information for how an RRSP can fit into your overall financial plan, please contact us.