How much can you contribute?

Tax laws permit you, for any given year, to contribute an amount equal to 18% of your eligible income from the previous year to your or your spouse's RRSP, up to a maximum of $19,000 in 2007, less the pension adjustment (PA) for the same year. Your employer calculates the PA based on the benefits accumulated in your name in a supplemental pension plan or a Deferred Profit-Sharing Plan (DPSP).

You can increase your RRSP contribution by using your unused contribution room from previous years and making a surplus contribution.

This information (annual contribution, unused contribution room and pension adjustment) appears in the RRSP Deduction Limit Statement section of the Notice of Assessment that the Canada Revenue Agency (CRA) sends you each year after receiving your income tax return. Example of a notice of assessment

You must make your contributions for a single tax year before the end of the first 60 days of the following year.

To find out more, see Use your unused contribution room in the Money tips section.