RRSP Contribution Deadline & Limits Guide

Whether you already use a Registered Retirement Savings Plan (RRSP), or you’re looking to set one up, here’s some helpful information to help you stay organized.

At a glance

• RRSPs are investment accounts designed to help people save for retirement

• Money inside of an RRSP grows tax-deferred until withdrawal

• March 2, 2026 is the deadline for any 2025 contributions

• For 2025, you can invest up to 18 per cent of your previous year’s earned income, up to a maximum of $32,490

• If you contribute more than $2,000 over your maximum limit, you’ll get charged one per cent per month on the excess amount

What is an RRSP and how does it work?

The RRSP was created to help people save for retirement. Unlike non-registered accounts, where any income, capital gains or dividends are subject to tax, money inside of an RRSP can grow annually on a tax-deferred basis. Once you remove money, you will have to pay as withdrawals are taxed at your regular tax rate.

The account works best when you contribute in your higher earning years (when you’re in a top tax bracket) and when you withdraw in lower earning years (in retirement). That’s because any money you invest lowers your taxable income, which can result in a tax refund (which many people put back into their RRSP). In retirement, if you are in a lower tax bracket, you’ll pay less than if you were still in that higher bracket. Between the time you contribute and the time you withdraw, your investments can compound annually tax-free.

When is the RRSP contribution deadline?

For the 2025 tax year, the RRSP contribution deadline is March 2, 2026. Contributions made within the first 60 days of the year (on or before the deadline) can be deducted from your 2025 taxable income and potentially result in a tax refund. You can also apply the deduction to a future tax year. Any contributions made after this date will generally be applied to the 2026 tax year, unless you decide to postpone taking the deduction.

What is the RRSP contribution limit?

Your maximum allowable RRSP contribution limit is generally 18 per cent of your previous year’s earned income, up to the government maximum for the tax year ($32,490 for 2025), minus your previous year’s pension adjustment. A pension adjustment reflects the value of the benefits and savings under an employer’s registered pension plans and deferred profit-sharing plans. Any unused deduction room from the preceding year is also carried forward for your use in the current year.

The Government of Canada sets the annual contribution limit. You can check your specific contribution limit by visiting the My Account for Individuals section of the Canada Revenue Agency (CRA) website.

What happens if I overcontribute?

It’s good to know your contribution limit, as there can be penalties if you exceed your maximum lifetime limit by more than $2,000. (You are allowed to contribute more than the annual maximum if you have unused contribution room from prior years.) If you do end up investing more, you’ll get charged 1 per cent per month on the excess amount over the $2,000 buffer. You will be required to pay this amount until you either withdraw the overage amount or your contribution room increases enough to absorb that extra amount.

How can I open an RRSP?

To open an RRSP, you must:

• Have a valid Social Insurance Number

• Be a Canadian resident for tax purposes

• File an income tax return in Canada

• Have earned income to contribute

• Open your account by the end of the year you turn 71

Important: While there is technically no age minimum to open an RRSP, some financial institutions only allow those who are the age of majority in their home province to open an RRSP.   

How does a spousal RRSP work?

A spousal RRSP is an RRSP that names your spouse as the “annuitant” — or owner — of the plan, even though you might be making the contributions. The main objective of a spousal RRSP is to shift retirement income from the higher-income-earning spouse to the lower-income-earning spouse. Your ability to contribute to a spousal RRSP is based on your own contribution room. This can be an effective income-splitting strategy. If, for example, you have $15,000 of RRSP contribution room available, you may contribute it to your personal RRSP, a spousal RRSP, or a combination of both, as long as the combined total doesn’t put you over the $15,000 limit.

Here’s how the spousal RRSP compares to a personal one:

*Withdrawals within 3 years of contribution are taxed to the contributor.

What investments can I use inside of an RRSP?

There is no shortage of investments to use inside an RRSP, though they must be considered qualified investments. That includes stocks, bonds, options, mutual funds, exchange-traded funds (ETFs), savings deposits, treasury bills, and guaranteed investment certificates (GICs). You can’t add crypto, though you can hold cryptocurrency ETFs, nor can you hold shares of private companies, direct investments in real estate, or other physical commodities. Find out more here.

How can I invest in my RRSP?

If you want to grow your retirement savings, contributing to an RRSP at any point during the year is a good idea — and you may benefit from a tax deduction on your contributions. There are two common savings strategies people use. The first is the lump-sum approach, where you contribute a larger amount to your RRSP all at once. Ideally, this happens at the start of the year, giving your money up to 12 additional months for potential compounding compared with investing closer to the deadline, though many people choose the latter. The second strategy involves pre-authorized contributions (PACs), where smaller amounts are transferred directly from your bank account into your RRSP regularly, typically monthly. The benefit of PACs is that investing happens automatically, so you’re less likely to forget or delay contributing. Need more support with building an investment strategy that works for you? Book an Appointment with an RBC Financial Planner today.

Can I withdraw from my RRSP?

Your RRSP is designed to provide income in retirement. By December 31 of the year you turn 71, you must stop contributing and either withdraw all your money, which would come with a significant tax bill, or convert your RRSP to a Registered Retirement Income Fund (RRIF) or an annuity. Here are a few to keep in mind around withdrawals:

• Withdrawals from your RRSP will be added to your tax bill and you will be required to pay tax at your marginal income tax rate on those funds.

• To ensure you have enough money to pay your bill, the government imposes a withholding tax of between 10 per cent and 30 per cent, depending on how much money you remove. If you end up having to pay less tax, you’ll get some of that money back. If you have to pay more, you’ll get another bill.

• Withdrawals can affect your eligibility for government benefits, such as Old Age Security (OAS).    

• There are two situations where you can remove money without paying tax:

  • The Home Buyers’ Plan lets you borrow up to $60,000 from your RRSP to buy your first home. You have 15 years to pay this back to your RRSP, or you will have to pay tax on any amount still owing. Repayments start in the second year after you withdraw.

  • The Lifelong Learning Plan lets you borrow up to $10,000 per calendar year (to a maximum of $20,000) from your RRSP to cover training or education for yourself or your spouse. You have 10 years to pay this money, with repayments starting the year after you stop being a full-time student or the fifth year after you withdraw, whichever is earlier.

More resources

Find out more about RRSPs in RRSPs Explained and TFSA or RRSP: Which One is Right For Me?