# How you find out RRSP 2012 contribution room?



## youtoo (Apr 19, 2011)

Hi everyone, happy new year to all!

Just a quick question that I couldn't figure out the answer: *How do you guys figure out the contribution room of your RRSP for this 2012?
*

Do you do a rough calculation (18% of last year's income), contribute and then do adjustments when your Notice of Assessment arrives (does it arrive around april?)?

It's weird because I've always though it depended on your past year's income, but searching on google I've seen pages saying that is a fixed number ($22,970) (http://www.taxtips.ca/rrsp/rrspcontributionlimits.htm)

Thanks!


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## natalie_d (Nov 25, 2009)

I'm pretty sure the fixed number you found is the maximum RRSP contribution amount allowed. The actual number you see on your notice of assessment should be:
Lower of: 18% * earned income and $22,970


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## youtoo (Apr 19, 2011)

Thanks natalie_d

When do they usually send the Notice each year? April?

Btw, 18% of earned income... pre-taxes income, right?


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## stardancer (Apr 26, 2009)

They send the notice of assessment when they have processed your return. So you would have received your noa for 2010 a few weeks after sending in the 2010 return. It contains the RSP calculation for 2011 tax year. You won't receive your noa for 2011, including the calculation for the 2012 year, until you have sent in your 2011 tax return.

$22,970 is the maximum contribution room, depending on your income. The calculation would be 18% of your 'earned' income less your PA if you have a defined benefit plan at work. Earned income means pre-tax employment, self-employment, rental income less specific deductions. See:

http://www.cra-arc.gc.ca/ebci/cjcm/srch/bscSrch?lang=en&bscSrch=rrsp


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## youtoo (Apr 19, 2011)

Thank you stardancer for the detailed answer


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