March 1 marks the RRSP deadline date. To be eligible for deduction in the previous tax year, your RRSP contribution must be paid before the end of the first 60 days of the current year, so this year, the RRSP contribution deadline for the 2016 tax year is March 1st, 2017.
The annual contribution limit is 18% of your earned income for the previous year. For 2016, the limit is $25,370.
Other elements to consider:
- Contributions to your employer’s pension plan reduce the amount you can invest in an RRSP.
- Your unused contribution room (annual contribution limit less contributions paid) for a year can be carried forward.
To know the exact amount of your contribution limit, refer to the “RRSP Deduction Limit Statement” section of the notice of assessment sent each year by the Canada Revenue Agency.
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