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(4) The total of all contributions to an RRSP are limited to the lesser of the current year’s 

contribution limit and 18% of an individual’s earned income for the preceding year, plus 

any carry-forward contribution room. The amount of earned income that generates the 

contribution limit each year is indicated in the table. 

(5) The deferred profit sharing plan (DPSP) contribution limits are equal to one-half of the  

RPP contribution limits for the year. 

(6) The total of all employer contributions to a DPSP are limited to the lesser of the current 

year’s contribution limit and 18% of an employee’s pensionable earnings for the year. The 

amount of pensionable earnings that generates the contribution limit each year is  

indicated in the table.

(7) Canadians age 18 and over can earn tax-free income in a Tax-Free Savings Account (TFSA) 

throughout their lifetime. Income, losses and gains on investment in the account, as well 

as amounts withdrawn, are not taxable and are not taken into account for determining 

eligibility for certain income-tested benefits or credits. Each calendar year, beginning in 

2009, a taxpayer can contribute up to $5,000 (or the indexed annual contribution amount) 

to a TFSA, plus any unused TFSA contribution room from the previous year. Generally, 

amounts withdrawn from a TFSA will be added to the individual’s contribution room for 

future years. TFSA contributions are not tax-deductible. The $5,000 annual contribution 

room limit is indexed for inflation, and rounded to the nearest $500.

(8) Retirement education savings plans (RESPs) are commonly used by parents and other 

guardians to save for a child’s post-secondary education. Like RRSPs, income earned in  

the savings plan accumulates tax-free. However, unlike RRSPs, contributions made to an 

RESP are not deductible in calculating the contributor’s net income for tax purposes. While 

there is no annual limit, contributions into the plan should be carefully considered  

in order to maximize government assistance payments under the Canada Education 

Savings Grants and Canada Learning Bonds programs.

(9) In addition, there is no annual contribution limit for a beneficiary. However, for each 

beneficiary there is a lifetime limit of $50,000, regardless of the number of plans in place 

for that beneficiary.

(10) A registered disability savings plan (RDSP) is a savings plan to help parents and others save 

for the long-term financial security of a person who is eligible for the disability tax credit. 

Like RESPs, contributions to RDSPs are not tax-deductible, but investment income can be 

earned in the plan tax-free. While there is no annual limit, contributions into the plan should 

be carefully considered  in order to maximize government assistance payments under the 

Canada Disability Savings Grant and Canada Savings Bonds programs.

(11) While there is no annual limit, contributions on behalf of any one beneficiary are capped at 

a lifetime maximum of $200,000. Contributions can continue to be made until the end of 

the year the beneficiary turns 59, or until the beneficiary ceases to be a resident of Canada, 

dies or ceases to qualify for the disability tax credit.

Retirement and Savings Plans—Contribution Limits  

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Current as of December 31, 2014