Ottawa: The Canada Revenue Agency (CRA) has officially announced the new investment contribution limits for Canada’s Registered Retirement Savings Plan (RRSP). According to the decision, the RRSP limit will be raised to $35,390 in 2027 and $36,390 in 2028, up from $33,810 in 2026. The increase coming into effect in 2027 marks the largest dollar amount increase in the last three years.
The CRA determines these limits based on annual changes in federal tax regulations. The increase in contribution limits will allow individuals to set aside a larger amount into savings with tax deductions. However, authorities warned that to avoid unnecessary penalties, individuals should deposit money only after checking their exact contribution room via ‘CRA My Account’ or their ‘Notice of Assessment’.
The RRSP is a tax-advantaged savings plan introduced by the government for employees and workers in Canada to save for retirement. Contributions made to this plan qualify for income tax deductions, and investments can grow tax-deferred until the money is withdrawn.
