An RRSP is a savings plan that is "registered" with Canada Revenue Agency (CRA). It allows you to save money for your retirement on a tax-advantaged basis. That means you don’t pay tax on the income your investments earn until you withdraw the money from your RRSP.
You may deduct any allowable contributions you make to your RRSP from your annual income. This will reduce the amount of income tax you pay. Any income earned in your RRSP is tax deferred until the funds are withdrawn. As long as your investments stay in your RRSP, any income earned compounds; your income will earn income. This can significantly increase the amount of money you will accumulate for retirement.
This table outlines the annual money purchase (MP), defined benefit (DB), registered retirement savings plan (RRSP) and deferred profit sharing plan (DPSP), as well as the year's maximum pensionable earnings (YMPE).
| Year | MP limit | DB limit | RRSP dollar limit | DPSP limit (1/2 MP limit) |
YMPE |
|---|---|---|---|---|---|
| 2018 | 1/9 tde money purchase limit | $26,230 | |||
| 2017 | $26,230 | $2,914.44 | $26,010 | $13,115 | $55,300 |
| 2016 | $26,010 | $2,890.00 | $25,370 | $13,005 | $54,900 |
| 2015 | $25,370 | $2,818.89 | $24,930 | $12,685 | $53,600 |
| 2014 | $24,930 | $2,770.00 | $24,270 | $12,465 | $52,500 |
| 2013 | $24,270 | $2,696.67 | $23,820 | $12,135 | $51,100 |
| 2012 | $23,820 | $2,646.67 | $22,970 | $11,910 | $50,100 |
| 2011 | $22,970 | $2,552.22 | $22,450 | $11,485 | $48,300 |
| 2010 | $22,450 | $2,494.44 | $22,000 | $11,225 | $47,200 |
| 2009 | $22,000 | $2,444.44 | $21,000 | $11,000 | $46,300 |
| 2008 | $21,000 | $2,333.33 | $20,000 | $10,500 | $44,900 |
| 2007 | $20,000 | $2,222.22 | $19,000 | $10,000 | $43,700 |
| 2006 | $19,000 | $2,111.11 | $18,000 | $9,500 | $42,100 |
| 2005 | $18,000 | $2,000.00 | $16,500 | $9,000 | $41,100 |
| 2004 | $16,500 | $1,833.33 | $15,500 | $8,250 | $40,500 |
| 2003 | $15,500 | $1,722.22 | $14,500 | $7,750 | $39,900 |
| 2002 | $13,500 | $1,722.22 | $13,500 | $6,750 | $39,100 |
| 2001 | $13,500 | $1,722.22 | $13,500 | $6,750 | $38,300 |
| 2000 | $13,500 | $1,722.22 | $13,500 | $6,750 | $37,600 |
| 1999 | $13,500 | $1,722.22 | $13,500 | $6,750 | $37,400 |
| 1998 | $13,500 | $1,722.22 | $13,500 | $6,750 | $36,900 |
| 1997 | $13,500 | $1,722.22 | $13,500 | $6,750 | $35,800 |
| 1996 | $13,500 | $1,722.22 | $13,500 | $6,750 | $35,400 |
| 1995 | $15,500 | $1,722.22 | $14,500 | $7,750 | $34,900 |
| 1994 | $14,500 | $1,722.22 | $13,500 | $7,250 | $34,400 |
| 1993 | $13,500 | $1,722.22 | $12,500 | $6,750 | $33,400 |
| 1992 | $12,500 | $1,722.22 | $12,500 | $6,250 | $32,200 |
| 1991 | $12,500 | $1,722.22 | $11,500 | $6,250 | $30,500 |
| 1990 | $11,500 | $1,722.22 | (Old limits) | $5,750 | $28,900 |