RRSP Contribution Limit for 2023

[shadow_of_life]

Hi all,
I landed Canada in March 2022, and have been working since May 2022. According to what I read, I can start contributing to my RRSP starting Jan 1st 2023 up to 18% of my 2022 Canadian income. I haven't filed my tax for 2022 yet, so no CRA assessment is provided with regards to the contribution room. however, Can I start contributing to my RRSP already given the rule?

 

[seamarine]

Yes, you should be able to, just don't over contribute.

 

[canuck78]

Hi all,
I landed Canada in March 2022, and have been working since May 2022. According to what I read, I can start contributing to my RRSP starting Jan 1st 2023 up to 18% of my 2022 Canadian income. I haven't filed my tax for 2022 yet, so no CRA assessment is provided with regards to the contribution room. however, Can I start contributing to my RRSP already given the rule?

No you can’t start contributing at the moment.

 

[shadow_of_life]

No you can’t start contributing at the moment.

I am confused... Where can I find the authoritative source for this information? Thanks!

 

[YVR123]

I am confused... Where can I find the authoritative source for this information? Thanks!

Search for RRSP in the link below:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html

Registered retirement savings plan contributions

Generally, you cannot deduct contributions you made to a registered retirement savings plan (RRSP) in 2022 if this is the first year that you will be filing a return in Canada.

If you filed a return in Canada for any tax year from 1990 to 2021, you may be able to claim a deduction for RRSP contributions that you made in Canada for 2022. The CRA determines the maximum amount you can deduct based on certain types of income you earned in previous years.

You can view your RRSP deduction limit online on My Account or on the MyCRA mobile app.

For more information, go to Line 20800 – RRSP deduction.

The above was referring to NOA line 20800 of the previous year. So if you filed tax in 2021, then your 2021 NOA will show how much you can contribute in RRSP and deduct that from your income in 2022.

Since you landed in 2022, then after you filed your tax return in 2022 (tax filing deadline for 2022 is April 30, 2023), you will find out how much RRSP you can contibute and deduct from your 2023 tax retrun.

So the answer is, yes, you can but you have to watch how much you are contributing for tax year 2023. You don't know the limit until you file 2022 tax return and get your NOA.

 

[shadow_of_life]

Search for RRSP in the link below:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html



The above was referring to NOA line 20800 of the previous year. So if you filed tax in 2021, then your 2021 NOA will show how much you can contribute your RRSP in 2022.

Hi YVR123,
Thanks for the quote. I understand that I cannot contribute for 2022. My question though is for 2023. I had income in 2022, so I think according to the rule, I will start having contribution room in 2023 for sure. However, since I have not received CRA assessment, I want to know if I can start contributing now given my own assessment based of 18% of my 2022 income.

 

[YVR123]

Hi YVR123,
Thanks for the quote. I understand that I cannot contribute for 2022. My question though is for 2023. I had income in 2022, so I think according to the rule, I will start having contribution room in 2023 for sure. However, since I have not received CRA assessment, I want to know if I can start contributing now given my own assessment based of 18% of my 2022 income.

Yes. I have updated my answer. Sorry for missing the actual year and date of your question.

 

[canuck78]

Hi YVR123,
Thanks for the quote. I understand that I cannot contribute for 2022. My question though is for 2023. I had income in 2022, so I think according to the rule, I will start having contribution room in 2023 for sure. However, since I have not received CRA assessment, I want to know if I can start contributing now given my own assessment based of 18% of my 2022 income.

Don’t you have to file your taxes especially your first return before contributing? CRA doesn’t have the record of your eligibility to contribute and at what amount yet.

 

[shadow_of_life]

Don’t you have to file your taxes especially your first return before contributing? CRA doesn’t have the record of your eligibility to contribute and at what amount yet.

My understanding is that the one can estimate her contribution room in 2023 based on 2022. You don't need CRA to tell you that.