A Registered Retirement Savings Plan (RRSP) is an investment plan for retirement purposes which registered with the government. You can contribute to your RRSP account up to a limit every year, and you can invest your money into stocks and mutual funds.
The RRSP contribution limit in 2020 is $27,230 or 18% of last year’s income, whichever is less, plus any unused contribution room from previous years. The contributions are deductible from the taxable income, therefore, contributing to the RRSP can significantly increase your tax refund.
If you don’t contribute the maximum allowable amount to your RRSP in any given year, you can carry forward your contribution room to future years, so you can contribute later.
Our calculator estimates your contribution limit and calculates how much tax refund you can expect, so it is a perfect tool for tax planning purposes. However, it doesn’t calculate with the unused contribution room from previous years.
Usage of the RRSP Calculator
- Select the province: you can choose all the Canadian provinces or territories from the list.
- Enter your salary. This is required to calculate your tax refund.
- Enter your previous year salary. This is required to calculate the limit of the deductible contributions.