| 2017 Contributions (PDF) |
With the kids heading back to school after the holiday break it is retirement contribution time again! We have outlined the 2014-2017 maximum contribution limits for RRSPs and TFSAs below, subject to contribution room as per your Canada Revenue Agency (CRA) Notice of Assessment (NOA) from last year.
2017 RRSP Contribution Limit
Your 2017 RRSP contribution limit is based on 18% of your 2016 earned income, up to a maximum of $26,010 (vs. $25,370 in 2016), less any pension adjustments. To qualify for the maximum RRSP pension contribution, your 2016 earned income would have to be $144,500 (vs. $140,945 in 2016) or higher.
2017 TFSA Contribution Limit
The federal government has frozen the 2017 TFSA contribution limit at $5,500. However, if you have yet to open a TFSA account you can contribute $52,000 owing to the unlimited carry forward associated with this type of account if you were at least 18 in 2009 and have been a resident of Canada during this period.
| Year | RRSP(1) | TFSA | ||||
| Dollar Limit | Dollar Limit | |||||
| 2017 | $26,010 | $5,500 | ||||
| 2016 | $25,370 | $5,500 | ||||
| 2015 | $24,930 | $10,000 | ||||
| 2014 | $24,270 | $5,500 | ||||
| 1. March 1, 2017 is the deadline to make a RRSP contribution for the 2016 tax year. | ||||||
2017 Registered Disability Savings Plan (RDSP)
Finally, if there is a member of your family that qualifies for disability tax credits, you should consider a Registered Disability Savings Plan (RDSP). RDSPs are tax-deferred plans that have a $200,000 lifetime contribution maximum. Capital can be contributed to the plan at any time until the beneficiary turns 59 and while contributions are not tax deductible, plan earnings grow on a tax-deferred basis. Further, RDSP plan holders may qualify to receive Federal government assistance in the form of matching Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs) valued up to $3,500 and $1,000, respectively, per year of eligibility.
Please let us know if you have any questions regarding a 2017 contribution to a retirement account(s) or if you are interested in opening a new retirement account. The deadline to make a RRSP contribution is March 1, 2017, basically 60 days into the new year.
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