# RRSP contribution room



## JoeBlack (Mar 23, 2012)

Hello

I returned to Canada after living abroad for 5 years in Nov 2011. At that time I re-entered as a "returning Canadian", re-assumed residency and started a new job making $100,000 / year. So for 2011, I earned about $17000 during Nov/Dec. I had never previously opened up a RRSP in Canada, so I called the CRA about previous RRSP contribution room and found that I had about $18,000 from years earlier. I opened the RRSP and contributed $18,000 at the end of 2011. 

I am currently filing my tax return but will only take only a small deduction out of last year's total contribution, as I believe saving the deduction will enable me to get a much bigger refund next year. 

I would also like to continue to contribute as much as possible to my RRSP as soon as possible! However not entirely clear how the rules apply. In 2011 (after resuming Canadian residency) I earned little more than $17000 which at 18% means $3060 in contribution room. Can I add that much to my RRSP today even before filing my tax return and getting back the notice of assessment? 

During 2012 I will earn $100,000 gaining another $18,000 in contribution room. However that is only available from Jan 1st 2013, or is it after Mar 1st, 2013? There is no way that it is available to somebody in advance, right? It seems like a long time to wait for a "new-resident". I want to better understand how soon somebody can make their contributions as I would like to start compounding my returns ASAP!

Thanks!


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## cardhu (May 26, 2009)

There's no special treatment for new residents. 
RRSP contribution room becomes available on January 1st of each year, based on earned income of the prior year. 
You don't need to wait for your notice of assessment, and you don't need to wait until March 1st.
You can make your 2012 contribution right away, and you can make your 2013 contribution on January 1 next year.


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