Should you collect CPP and OAS while working in your 60s? Dec 7th
The best RRSPs in Canada for 2023 + MORE Jan 4th
“What type of content am I reading?” + MORE Nov 23rd
What is the CPP Survivor’s Pension? How can Canadians claim this benefit? + MORE Feb 15th
How much money do you need to retire in Canada? Is it really $1.7 million? + MORE Mar 1st
How do the RRSP contribution carry forward rules work?
The rules around RRSP contribution room
As soon as a taxpayer starts to earn income—like employment income, self-employment income, royalties, research grants or net rental income—they accumulate room for their registered retirement savings plan (RRSP). There are no age limits, so a teenager with a part-time job can start to build their RRSP room as long as they file a tax return to report their earned income.
How does RRSP carry forward work?
Your RRSP room carries forward, meaning the amount is cumulative. So, 18% of your earned income for the previous year, up to the current year’s maximum contribution limit, becomes your RRSP room for the year. For 2022, the maximum is $29,210 for taxpayers with at least $162,278 of earned income in 2021. This gets added to any previously unused RRSP room from the past…