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RRSP Deadline & Contribution Limit 2013/2014

RRSP Deadline/Contribution Limit

For those of you coming here through Google search looking for the RRSP deadline for tax year 2013, the deadline is: March 3, 2014.  Basically 60 days into the new year.

There is an abundance of choice out there for RRSP accounts, but here is a review of the best online brokers for RRSPs.  If you’re not sure if RRSPs are right for you, check out my article on “Who Should Contribute to an RRSP?“.

Also note that your RRSP contribution limit should be on last years Notice of Assessment (NOA) or 18% of your last years earned income up to a maximum contribution of $23,820 (for 2013 tax year).

If you don’t have your NOA, then you can call Canada Revenue Agency (CRA) and they will determine your limit after a bunch of security questions. CRA also has a free online service that enables you to access your RRSP contribution limit information online. Remember that unused contribution room from previous years can be carried forward.

Here are the RRSP contribution limits for other years:

  • 2012 – $22,970
  • 2013 – $23,820
  • 2014 – $24,270

If you want to figure out your tax return based on your RRSP contribution, here is what you do:

  1. Determine your marginal tax rate based on your income and province. For me personally, my marginal tax rate is: 38.16% (try taxtips for your tax rate)
  2. Multiply your total contribution for the year by your marginal tax rate and voila, you will have your approximate RRSP tax refund. Example: In 2006, I contributed around $6000 to my RRSP, so I should get approximately: $6000 x 38.16% = $2289.60
  3. Or, you can forget the math and use an RRSP calculator that is easily found online.

Before you go running to the bank, remember, you don’t have to rush into an investment immediately. You can simply deposit money into your RRSP account, park it in a money market fund, then decide which investments to go with later. Now.. run to the bank. :)

Also note that you can carry forward your tax deduction, so even if you are in a low income year, you can invest now and claim the deduction during years when income is higher.

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40 Comments, Comment or Ping

  1. 28. Lori Scott

    Just wondering why the RRSP deadline is March 01, 2011 and the T4 deadline for employers to have them in the mail is February 28, 2011…Why do they not allow a larger gap??

  2. 29. sunny

    Hi Frugal
    I have a question here:
    I will contribute to my RRSP account for the first time in 2011 for the tax yr 2010. I have always leaned about the restrictions on withdrawal from RRSP and are subject to certain conditions such as first time home buyers etc.
    If I choose to withdraw in futures years; accounting withdrawals as income in the corresponding tax year, whether this kind of withdrawal is allowed by CRA ??

  3. @sunny, yes you can withdraw from your RRSP but in addition to paying tax as income,you’ll lose the contribution room. Here is an article with more details: how rrsp withdrawals work

  4. 31. Chris

    Firstly, I love your site, I’ve been following it for about 3 years now.

    I typically do my taxes online before Mar 1, but don’t submit them, just see if I’ll owe or not, and if so, then I’ll purchase RRSP’s to offset that, however, I’ve always gone in to the bank to do so, if I purchase RRSP’s online (through TD Canada Trust in this case) are you typically issued all the information you need right there on the spot? So long as my purchase of an RRSP today or tomorrow counts as being purchased before March 1st, I’m happy.

    Thanks,

    Chris

  5. @Chris, Thanks for the kind feedback. About your question, if you transfer money to your RRSP online, I do not believe they issue any information. You are expected to know what your contribution limits are. My understanding is that you have all day on March 1 to make your contribution.

  6. 33. Chris

    @FrugalTrader That’s great news, thanks!

  7. 34. Jaden

    Hey Guys,
    Question, If i have unused RRSP contribution from previous years, and have cash from unregistered investments on-hand, can i dump that All In- in one year- and reclaim taxes that i have paid in the Previous 5-10 years. Or does it just lower my current years income to receive tax paid from current year. IE: May only want to lower income to lower tax bracket for this year and not wipe income out to lose tax benefit for future years.

    Example; contribution limit for 2011 80,000
    annual income 70,000
    cash 100,000

    any ideas on a good strategy? Also considering the Smith Maneuver. Good posts here on that! Thanks guys!

  8. 35. sunny

    @Jaden

    As far as I know, you can dump your investment anytime into RRSP (knowing your RRSP limit) during the current year, and claim part of taxes for this year.
    You cannot claim for any taxes paid in the previous year.

    If you invest all of your money in one year (in rrsp), then you will likely feel the pinch on taxes in futures years

  9. 36. Jim Schultz

    Never certain on this one .Hopefully someone can clarify. Can I use past un used contributions and then deduct this amount from my taxable income.

    My notice of assessment says my 2011 deduction limit is $9224
    plus
    18% of earned income of $46014 = $8282 minus $3525 pension adjustment =

    $4757. $9224 +$4757 = $13,981…. is this the amount Im allowed to deduct?

    I always thought the maximum DEDUCTION was 18% but you could of course
    contribute past amounts. Have I misunderstood this all these years? Please someone help! THANKS

  10. 37. Mich

    Does this mean that all contributions up to 1 March 2014 are considered 2013 contributions?

    For example, lets say I contribute on 1 February 2013. But I want this to be a 2014 contribution (lets say I have maxed out my 2013 contribution limit). Can I do this – as long as I don’t include it as a contribution on my 2013 tax return but on my 2014 return instead?

  11. 38. Ed Rempel

    Hi Mich,

    No, it doesn’t. You should include all contributions up to March 3, 2014 (not March 1, since it’s a Saturday) on your 2013 tax return, but then you can choose to deduct any amount between zero and the total you contributed.

    If you want to carry forward your Feb.1 contribution, claim it on the return, but then do not deduct the amount.

    Ed

  12. 39. Kebe

    Hi all,
    I forgot to claim few cash I kept in my RRSP in 2012. Now I am filling my tax return 2013 by my self. This year I bought new house and I am filling my tax return for the first time. I did not put any RRSP in 2013. Do I need to put the 2012 RRSP in 2013? very confused and I am new to Canada too.

  13. 40. sunny

    @kebe,
    It should not be hard tax-filing by oneself in the situation as you are in.
    Pl try to understand there are these figures for RRSP account:
    1. RRSP Room from past years
    2. RRSP created in the 2013.
    3. Previous contribution – not claimed & claimed. Keep track
    4. Contribution in 2013.
    5. If you have not filed until, you can claim and withdraw for your first house buying.

    I do not know if you have completed house-buying transaction, and if you have not withdrawn anything from RRSP?
    If you have already withdrawn from RRSP, then that is a loan from RRSP account which you must repay every year proportionately.

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