Registered Account Contributions

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With the arrival of 2018, we thought it would be useful to remind you of the contribution limits for the various registered accounts you may wish to fund.

RRSPs

The deadline for 2017 contributions is Wednesday, March 1, 2018.

Yearly limits for RRSP contributions are equal to 18% of an individual’s earned income from the prior calendar year, subject to a maximum amount. The RRSP contribution limit for 2017 is $26,010. Any unused RRSP contribution room will accrue and can be carried forward into future years. For this reason, it is important to review your most recent Notice of Assessment to determine precisely how much you are able to contribute because you may have unused contribution room from past years. For your information, the maximum contribution room that can be accrued in 2018 is $26,230.

TFSAs

As of January 1, 2018, any Canadian resident who will be 18 years of age or older in 2018 gains an additional $5,500 of TFSA contribution room. Any unused TFSA contribution room can be carried forward indefinitely for use in future years.

The total cumulative historical contribution room available to any Canadian resident who was 18 or older in 2009 (the year that the TFSA was introduced) is $57,500. The TFSA contribution room for each year is set out below:

2009 – $5,000
2010 – $5,000
2011 – $5,000
2012 – $5,000
2013 – $5,500
2014 – $5,500
2015 – $10,000
2016 – $5,500
2017 – $5,500
2018 – $5,500

In most cases, we recommend maximizing TFSA contributions to take advantage of tax free investment growth. Investors should also know that TFSA withdrawals can be made on a tax free basis at any time without any restrictions. That being said, if funds are withdrawn from a