How much money should I put in RRSP? | Mike Butean

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:


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