Reminder: You still have until March 2, 2026 to make RRSP contributions that can be claimed on your 2025 tax return.
Before you make your RRSP contribution, take 5 minutes, grab a tea or coffee, and review these 9 essential RRSP FAQs—they could lead to meaningful tax savings!
9 Most Frequently Asked Questions Canadians Have About Registered Retirement Savings Plan (RRSP)
1) How much can I contribute to my RRSP?
Check your 2024 Notice of Assessment (NOA). In the RRSP Deduction Limit and Available Contribution Room Statement section, look for your available RRSP contribution room for 2025 — that’s the maximum you can contribute for the 2025 calendar year.
2) What kind of income generates RRSP contribution room?
Generally, employment income, net self‑employment/business income, and net rental income (after expenses) count. Investment income (interest, dividends, capital gains) does not.
3) How much RRSP deduction can I claim?
Check your 2024 NOA. In the RRSP Deduction Limit and Available Contribution Room Statement section, look for your RRSP deduction limit for 2025. You can deduct up to that amount on your 2025 personal tax return.
If you make RRSP contributions from Jan 1–Mar 2, 2026, you can claim them on your 2025 personal tax return up to your 2025 RRSP deduction limit, and the contributions made from Jan 1–Mar 2, 2026 will consume your 2026 (Not 2025) RRSP contribution room.
4) Can I choose not to use my RRSP deduction this year?
Yes. RRSP deductions are optional. You can contribute now and claim the deduction in a future year when your income is higher.
5) What happens when I withdraw from my RRSP account?
Withdrawals are subject to withholding tax and are fully taxable as income in the year withdrawn, unless they are qualified withdrawals under the Home Buyers’ Plan or the Lifelong Learning Plan.
6) Can I have more than one RRSP account?
Yes. You can have multiple RRSPs at different institutions, but all deposits draw from the same personal contribution room.
7) How does a Spousal RRSP work and when is attribution applied?
A Spousal RRSP allows a higher‑income spouse (the contributor) to contribute to an RRSP owned by the lower‑income spouse (the annuitant).
It consumes the contributor’s own RRSP contribution room and is subject to the contributor’s RRSP deduction limit for the year. The deduction will be reported under the contributor’s personal tax return.
If the annuitant withdraws funds within 3 calendar years of a contribution, the withdrawal may be attributed back to (and taxed to) the contributing spouse.
After the year you turn 71, you can no longer contribute to your own RRSP, but you can still contribute up to your available RRSP room to a spousal or common‑law partner RRSP as long as your spouse/partner is 71 or younger on Dec 31 of the contribution year.
8) What happens to my RRSP when I turn 71?
In the year you turn 71 years old, you have to choose one of the following options for your RRSPs:
Withdraw the funds,
Convert your RRSP to a RRIF, or
Purchase an annuity.
If you convert to a RRIF, minimum withdrawals start the following year.
9) What happens if I overcontribute?
Excess contributions over the $2,000 buffer are subject to a 1% per‑month tax until withdrawn or absorbed by new room. This area is nuanced — speak to your tax advisor if you suspect an overcontribution.
You can visit CRA website below if you want to know more about RRSP Registered Retirement Savings Plan (RRSP) - Canada.ca
Disclaimer
The information above is based on the Income Tax Act and CRA administrative guidance available as of Feb 5, 2026. It is provided for general informational purposes only and does not constitute tax, legal, or accounting advice. Individual situations vary, and tax rules can be complex. Please consult a qualified tax professional for advice tailored to your specific circumstances.
