The RRSP contribution deadline is one of the most important dates in the Canadian tax calendar. Every year, millions of Canadians rush to make last-minute contributions before the deadline to claim a deduction on their prior year's tax return. But understanding exactly how the deadline works — and why contributing earlier is almost always better — can save you significant money over time.
The "60-day rule" means you have until 60 days after the end of the calendar year to make a contribution and still apply it to that tax year. When the 60th day falls on a weekend or statutory holiday, the deadline extends to the next business day. For 2024, the 60th day is Saturday March 1, making the deadline March 3, 2025 — though it is best to confirm the exact date each year.
Your RRSP contribution room for 2024 is 18% of your 2023 earned income, up to a maximum of $31,560. Any unused room from prior years is carried forward automatically. Your exact available room is shown on your 2023 Notice of Assessment or through CRA My Account.
The 18% RRSP room is calculated on your previous year's earned income, which includes:
Earned income does NOT include investment income, pension income, CPP/OAS, or EI benefits.
If you are a member of an employer pension plan (defined benefit or money purchase), your RRSP room is reduced by your Pension Adjustment (PA), shown in Box 52 of your T4 slip. This prevents double-dipping on retirement savings benefits.
The RRSP deadline rush each February-March is largely a cultural artifact. Contributing earlier in the year — or better yet, setting up monthly automatic contributions — has significant mathematical advantages:
For maximum benefit, contribute to your RRSP as early in the year as possible. Reinvest your tax refund (received in spring) into the following year's RRSP contribution. This "RRSP refund reinvestment" strategy significantly accelerates retirement wealth building over time.
Contributing more than your available room (minus the $2,000 lifetime over-contribution buffer) results in a 1% per month penalty tax on the excess. Always verify your contribution room before contributing, especially in years when you receive a T4 with a large Pension Adjustment.
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