What is the maximum annual RRSP contribution limit in dollar terms?

What is the maximum annual RRSP contribution limit in dollar terms?

• A. $28,000
• B. $31,560
• C. $29,000
• D. $34,000

Answer: (B)

The amount you can contribute to an RRSP each year is the lesser of 18% of your earned income or the CRA-set maximum dollar limit for that year. For the year in question, the CRA maximum dollar limit is $31,560. So the maximum annual RRSP contribution is $31,560, assuming your earned income is high enough that 18% would exceed that cap. If your earned income is lower and 18% is less than $31,560, your limit would be that smaller amount.

The amount you can contribute to an RRSP each year is the lesser of 18% of your earned income or the CRA-set maximum dollar limit for that year. For the year in question, the CRA maximum dollar limit is $31,560. So the maximum annual RRSP contribution is $31,560, assuming your earned income is high enough that 18% would exceed that cap. If your earned income is lower and 18% is less than $31,560, your limit would be that smaller amount.