Question 1

What is the RRSP contribution limit for the 2024 tax year?

Accepted Answer

For the 2024 tax year, the maximum RRSP contribution limit is C$31,560. However, your personal limit depends on your earned income from the previous year and any unused contribution room carried forward.

How your RRSP limit is calculated:

Your RRSP deduction limit for 2024 is the lesser of:
 18% of your 2023 earned income, or
 C$31,560 (the 2024 annual maximum)

...minus any pension adjustment (PA) from a workplace pension plan, plus any unused RRSP room carried forward from previous years.

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Question 2

What is the TFSA contribution limit for 2024 in Canada?

Accepted Answer

The TaxFree Savings Account (TFSA) contribution limit for 2024 is C$7,000. If you have been eligible since the TFSA was introduced in 2009 and have never contributed, your total cumulative room is C$95,000 as of 2024.

Annual TFSA limits over the years:

Year(s)  Annual Limit

20092012  C$5,000 
 20132014  C$5,500 
 2015  C$10,000 
 20162018  C$5,500 
 20192022  C$6,000 
 2023  C$6,500 
 2024  C$7,000

Key TFSA rules:

Eligibility: You must be a Canadian resident aged 18 or older with a val

Question 3

How does the RRSP Home Buyers' Plan work in Canada?

Accepted Answer

The Home Buyers' Plan (HBP) allows firsttime home buyers to withdraw up to C$60,000 from their RRSPs taxfree to purchase or build a qualifying home. This limit was increased from C$35,000 as part of the 2024 federal budget.

Eligibility requirements:

You must be a firsttime home buyer, meaning neither you nor your spouse or commonlaw partner owned a home that you occupied as a principal residence in the four calendar years before the withdrawal year.
 You must have a written agreement to buy o

Question 4

How do spousal RRSP contributions and attribution rules work in Canada?

Accepted Answer

A spousal RRSP is an RRSP registered in your spouse's or commonlaw partner's name, but you (the contributing spouse) make contributions and receive the tax deduction. This is a powerful incomesplitting strategy for retirement.

How spousal RRSPs work:

The contributing spouse claims the tax deduction for the contribution.
 The contribution uses the contributing spouse's RRSP deduction limit, not the annuitant spouse's limit.
 The annuitant spouse (the account holder) owns the funds and controls

Categories

RRSP & TFSA

What is the RRSP contribution limit for the 2024 tax year?

What is the TFSA contribution limit for 2024 in Canada?

How does the RRSP Home Buyers' Plan work in Canada?

How do spousal RRSP contributions and attribution rules work in Canada?