{"id":504288,"date":"2026-02-26T01:48:07","date_gmt":"2026-02-26T01:48:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/504288\/"},"modified":"2026-02-26T01:48:07","modified_gmt":"2026-02-26T01:48:07","slug":"how-to-find-out-rrsp-contribution-limit-tax-season","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/504288\/","title":{"rendered":"How to find out RRSP contribution limit tax season"},"content":{"rendered":"<p>Julie Seberras, head of wealth planning at Manulife Wealth, joins BNN Bloomberg to discuss RRSPs as deadline&#8217;s coming up on March 2. <\/p>\n<p class=\"c-paragraph\">The deadline for RRSP contributions for 2025 is fast approaching and contributions made in the first 60 days of the year could help lower last year\u2019s tax bill, a wealth manager says. <\/p>\n<p class=\"c-paragraph\"><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/rrsps-related-plans\/important-dates-rrsp-rrif-rdsp.html\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/rrsps-related-plans\/important-dates-rrsp-rrif-rdsp.html\">Canadians have until March 2 to contribute<\/a>, according to the Canada Revenue Agency. <\/p>\n<p class=\"c-paragraph\">Julie Seberras, Manulife\u2019s head of wealth planning and practice management says the 2025 RRSP contribution limit is based on 18 per cent of 2024 earned income, up to a maximum of $32,490. <\/p>\n<p class=\"c-paragraph\">\u201cDon\u2019t worry, you don\u2019t need to calculate that number yourself,\u201d says Seberras. \u201cThe CRA provides that for you on your notice of assessment.\u201d<\/p>\n<p class=\"c-paragraph\">Seberras says the 2025 contribution limit would have showed on the 2024 notice of assessment when taxes were filled. <\/p>\n<p>Group RRSPs reduce contribution limit<\/p>\n<p class=\"c-paragraph\">Canadians can <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/payroll\/benefits-allowances\/benefits-allowances-chart\/saving-pensions.html\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/payroll\/benefits-allowances\/benefits-allowances-chart\/saving-pensions.html\">hold a group RRSP made by their employer<\/a>, according to the CRA.<\/p>\n<p class=\"c-paragraph\">Seberras says contributions made in a group RRSP by employees and employers however will reduce the contribution limit for the current tax year.<\/p>\n<p class=\"c-paragraph\">\u201cMake sure that you\u2019re not overlooking the money that your employer has put in on your behalf as well, because that counts against your contribution room,\u201d says Seberras.<\/p>\n<p class=\"c-paragraph\">She says RRSPs offer tax benefits, especially for high-income earners, and are essential for retirement savings.<\/p>\n<p class=\"c-paragraph\">\u201cYou take out the money in retirement, when possibly your tax rate is lower because your income is lower in retirement,\u201d says Seberras.<\/p>\n<p class=\"c-paragraph\">She says a Tax Free Savings Account, Home Buyers Plan and Lifelong Learning Program, while flexible, have repayment requirements.<\/p>\n<p>Penalties for excess contributions<\/p>\n<p class=\"c-paragraph\">Overcontributions <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/rrsps-related-plans\/contributing-a-rrsp-prpp\/what-happens-you-over-your-rrsp-prpp-deduction-limit.html\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/rrsps-related-plans\/contributing-a-rrsp-prpp\/what-happens-you-over-your-rrsp-prpp-deduction-limit.html\">against the limit will incur penalties<\/a> in an RRSP, according to the CRA. <\/p>\n<p class=\"c-paragraph\">Canadians will pay a tax of one per cent per month on unused contributions if the limit is exceeded by more than $2,000.<\/p>\n<p class=\"c-paragraph\">\u201cIf you do find yourself in a situation where you have over contributed, you want to get that money out as soon as possible to stop those penalties,\u201d says Seberras.<\/p>\n<p class=\"c-paragraph\">She says the taxpayers should be tracking their contribution room.<\/p>\n<p class=\"c-paragraph\">With files from Julia Stratton, BNN Bloomberg<\/p>\n","protected":false},"excerpt":{"rendered":"Julie Seberras, head of wealth planning at Manulife Wealth, joins BNN Bloomberg to discuss RRSPs as deadline&#8217;s coming&hellip;\n","protected":false},"author":2,"featured_media":504289,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":{"0":"post-504288","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/504288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=504288"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/504288\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/504289"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=504288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=504288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=504288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}