# Basic question alert: Do earned interests count towards your RRSP contribution room?



## youtoo (Apr 19, 2011)

Hi everyone,

Let's say I have $10k room for contributions in my RRSP for 2012. 

Personally, I haven't done any contributions yet, but I did earned interests on what I already had in my RRSP.

Just for the sake of the example, let's say I earned $500 in interests during the first 4 months of 2012... Can I still contribute $10K? Or only $9.500?

My guess is that interests doesn't count towards your contributions, but I just wanna make sure. Thanks!!!


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## caricole (Mar 12, 2012)

youtoo said:


> Let's say I have $10k room for contributions in my RRSP for 2012.
> 
> Just for the sake of the example, let's say I earned $500 in interests during the first 4 months of 2012... Can I still contribute $10K? Or only $9.500?
> 
> My guess is that interests doesn't count towards your contributions, but I just wanna make sure. Thanks!!!


Your contribution room remains unchanged, regardles of what happened INSIDE your RRSP :encouragement:


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## youtoo (Apr 19, 2011)

Thanks for the answer. Same for my TFSA?


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## caricole (Mar 12, 2012)

youtoo said:


> Thanks for the answer. Same for my TFSA?


Yes


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## Square Root (Jan 30, 2010)

Passive income, interest and dividends, do not increase your RSP limit, wherever it is earned.


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