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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as amounts withdrawn, are not taxable and are not taken into account for determining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amounts withdrawn from a TFSA will be added to the individual’s contribution room for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