Updated: Feb 10
In this article, I will talk about how much money should I put in RRSP
What is the contribution deadline?
The contribution deadline is usually at the end of the first 2 months of the year and specifically, this year is March 1st, 2021 for 2020.
What is the annual contribution limit?
The annual contribution limit is a maximum of 18%, but no more than $27,230 for 2020
That maximum amount was growing over time and will continue to grow.
How much money should I put into RRSP?
Arriving to the main topic, the answer depends:
-It is always recommended to take the employers matching contribution plan and eventually put the money in a conservative fund to not lose them due to volatility
-For those who did not buy a house yet it is worthwhile considering contributing at least until you reach $35,000. You can then borrow the amount for 15 years without interest and get advantage of the tax refund as well. Some conditions might apply.
-For those in the high bracket earners you might want to check first how much do you need to contribute in order to get you in a lower bracket, first of all, and secondly maybe would be worthwhile doing a spousal RRSP. With the spousal RRSP, you get the chance to move into a lower bracket and do income splitting as well
Feel free to contact me if you need help with your RRSP at: