What is an RRSP contribution limit as stated in income tax assessment?
I'm wondering how much I'm allowed to contribute to my RRSP this year? On my income tax assessment it says my RRSP deduction limit is $6,499.00. Does this mean I am allowed to contribute up to that amount to my RRSP? I am a student this year and am not employed. My net income last year was $1 and I read somewhere you can only contribute 18% of your net income? A little confused.
Fri Mar 20, 2015 10:14 pm
Cash: $ 2.65
Joined: 23 Mar 2015
Re:What is an RRSP Contribution Limit?
I can't believe no one responded to this for you yet. Hopefully I'm not too late to help.
You are correct - Your RRSP contribution limit is at the bottom of your Notice of Assessment (NOA). There is a rollover/cumulative affect in RRSP's. So, in years passed, you earned enough to have $6499.00 contribution room in your RRSP's.
You can safely contribute that amount to your RRSP's, but if I may add my 2 cents, in many cases, it's better to max your TFSA's first.