How much can I contribute?

Each year the government allows you to contribute a specified amount to your RRSP. This amount is known as your RRSP contribution limit. It is based on the amount of employment income you earned in the previous year and the value of your previous year's Pension Adjustment calculated from the contribution made to your company pension plan, either by yourself or your employer.

Note: The benefits accrued to the individual, in respect of his/her participation, to a Registered Pension Plan (RPP) or a Deferred Profit Sharing Plan (DPSP) will result in an adjustment or reduction of his/her RRSP contribution room.

The 2006 RRSP contribution limit is 18% of your previous year’s earned income to a maximum of $18,000 less previous year’s Pension Adjustment (PA) plus current year’s Pension Adjustment Reversal (PAR). The current year’s net past-service Pension Adjustment (PSPA) must also be deducted from your contribution limit.

Year    Maximum RRSP Contribution 2005    $16,500 2006    $18,000 2007    $19,000