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How much can I contribute to my RRSP?
Your Notice of Assessment from
Canada Revenue Agency
for the 2007 tax year shows your 2008 RRSP deduction limit.
If you don’t have that available, you
can call Canada Revenue Agency, (CRA)
TIPS line - an automated phone service -
to get the information.
You may also access your RRSP
information online through the My
Account system on the CRA website or by
clicking the following:
http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html
You will need to have the following
information handy when you call
or access online:
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Your Social Insurance Number
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Your month and year of birth
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The amount you reported on line 150 of
your 2007
income tax return
The calculation that CRA uses to
determine your 2008 contribution room is
as follows:
18% of 2007 earned income, to a maximum
of $20,000, (the maximum for 2009 will
be increased to $21,000 and will
increase by $1,000 per year through 2010), plus any
unused contribution room from previous
years, less Pension Adjustment
deductions and other deductions for
pension plan members
In addition to your contribution limit,
you are also allowed an
over-contribution amount of up to $2,000
without penalty. This doesn’t increase
your deduction limit but it does allow
you to have more money growing
tax-free. There are pros and cons to
this strategy, so, if you would like
more information about this, please ask
us.
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